LEASES

12 Months Ended

Dec. 31, 2023

Leases

LEASES

NOTE 12 – LEASES

The following was included in our balance sheet as of December 31, 2023 and 2022: 

	December 31,
Operating leases	2023		2022
Assets
ROU operating lease assets	$	496,685	$	2,724,226
Liabilities
Current portion of operating lease	$	80,400	$	512,373
Operating lease, net of current portion		496,335		2,547,524
Total operating lease liabilities	$	576,735	$	3,059,897

The weighted average remaining lease term and weighted average discount rate at December 31, 2023 and 2022 were as follows:

	December 31,
Operating leases	2023		2022
Weighted average remaining lease term (years)		7.75		7.25
Weighted average discount rate		6.00%		6.00%

Operating Leases

On January 12, 2021, the Company’s newly acquired subsidiary entered into an operating lease agreement to rent office space in Mumbai, India. This three-year agreement commenced January 12, 2021 with an annual rent of approximately $50,000.

On May 27, 2021, the Company’s newly acquired subsidiary entered into an operating lease agreement to rent office space in Warwick, United Kingdom. This ten-year agreement commenced May 27, 2021 with an annual rent of approximately $85,000 with the first six months rent free.

On August 31, 2021, the Company’s newly acquired subsidiary entered into an operating lease agreement to rent office space in Tempe, Arizona. This five-year agreement commenced August 31, 2021 with an annual rent of approximately $192,000.

On October 20, 2021, the Company’s newly acquired subsidiary entered into an operating lease agreement to rent office space in Warwick, United Kingdom. This ten-year agreement commenced October 20, 2021 with an annual rent of approximately $200,000 with the first six months rent free. 

On March 9, 2022, the Company entered into an operating lease agreement to rent office space in Houston, Texas. This ten-year agreement commenced March 9. 2022 with an annual rent of approximately $81,000 with the first twelve months rent free.

On June 28, 2023, the Company recognized a gain on deconsolidation of $1,642,146 related to Optilan (UK) and its subsidiaries leases.

The following table reconciles future minimum operating lease payments to the discounted lease liability as of December 31, 2023: 

Years Ended December 31,
2024		82,597
2025		84,726
2026		86,853
2027 and later		393,495
Total lease payments		736,650
Less imputed interest		(159,915	)
Total lease obligations		576,735
Less current lease obligations		(80,400	)
Long-term lease obligations	$	496,335