18. LEASES

On April 8, 2021, GGI entered into a lease agreement to lease a retail space in Miami, Florida for 7 years, which expires May 1, 2028. As of September 30, 2022, the lease had a remaining term of approximately 5.6 years. Lease payments begin at $26,758 per month and escalate 3% every year over the duration of the lease. The Company was granted rent abatements of 15% for the first year of the lease term, and 10% for the second and third year of the lease term. The Company was required to pay a $56,130 security deposit.

As of September 30, 2022, the Company had no leases that were classified as a financing lease.

Total operating lease expenses were approximately $83,000 and $249,000 during the three and nine months ended September 30, 2022, respectively and were approximately $83,000 and $138,000 during the three and nine months ended September 30, 2021, respectively. Lease expenses are recorded in general and administrative expenses on the accompanying condensed consolidated statements of operations.

Supplemental cash flow information related to leases was as follows:

SCHEDULE OF SUPPLEMENTAL CASH FLOWS INFORMATION RELATED TO LEASES 

Future minimum lease commitments are as follows:

SCHEDULE OF FUTURE MINIMUM LEASE COMMITMENT 

The Company is the lessor of a building and land that it purchased in connection with the acquisition of GDS, pursuant to an operating lease which expires on August 31, 2031. At the end of the lease, the lessee may enter into a new lease or return the asset to the Company. Effective in the month of September 2022, the lease charge to the lessee was increased to approximately 599,000 Argentine Pesos from approximately 416,000 Argentine Pesos per month. The Company recorded lease revenue of approximately $24,000 and $39,000, during the three and nine months ended September 30, 2022, respectively, related to this lease agreement.