SKYX Platforms Corp. Leases Disclosure
NOTE 6 OPERATING LEASE LIABILITIES
In April 2022, the Company entered into a 58-month lease related to certain office and showroom space pursuant to a sublease that expires in February 2027. The Company recognized a right-of-use asset and a liability of $1,428,764 pursuant to this lease.
In September 2022, the Company entered a 124-month lease related to its future headquarters offices and showrooms space. The Company recognized a right-of-use asset and a liability of $22,192,503 pursuant to such lease. In connection with the execution of lease, the Company was required to provide the landlord with a letter of credit in the amount of $2.7 million, which is secured by the same amount of cash. In January 2024, the Company entered in a 35-month lease related to its Sacramento office. The Company recognized a right-of-use asset and a liability of $ 662,696 pursuant to such lease.
The following table outlines the total lease cost for the Company’s operating leases as well as weighted average information for these leases as of December 31, 2024 and 2023 respectively:
Twelve Month Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Cash paid for operating lease liabilities | $ | 2,101,316 | $ | 687,849 | ||||
| Right-of-use assets obtained in exchange for new operating lease obligations | $ | 662,696 | $ | 21,214,652 | ||||
| Fixed rent payments | 2,703,789 | 280,218 | ||||||
| Lease – Depreciation expense | $ | 2,127,319 | $ | 1,870,393 | ||||
| Weighted-average discount rate | 6.45 | % | 6.41 | % | ||||
| Weighted-average remaining lease term (in months) | 95 | 102 | ||||||
| Minimum Lease obligation | ||||
| Twelve months ended December 31, 2025 | 2,350,868 | |||
| Twelve months ended December 31, 2026 | 2,357,032 | |||
| Twelve months ended December 31, 2027 | 2,288,363 | |||
| Twelve months ended December 31, 2028 | 2,471,537 | |||
| Twelve months ended December 31, 2029 and thereafter | 13,259,566 | |||
| Total | $ | 22,727,366 | ||
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.