LEASES

12 Months Ended

Dec. 31, 2022

NOTE 4 — LEASES

We are subject to two non-cancelable operating leases for office space expiring April 2, 2023. These leases do not have significant lease escalations, holidays, concessions, leasehold improvements, or other build-out clauses. Further, the leases do not contain contingent rent provisions. The leases do not include options to renew.

Because our lease does not provide an implicit rate, we use our incremental borrowing rate in determining the present value of the lease payments. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. The weighted-average discount rate as of December 31, 2022 and December 31, 2021 was 4.5% and the weighted-average remaining lease term is one year.

Rent expense for office facilities for the year ended December 31, 2022 and 2021 was $73,146 and $66,459, respectively.

The components of our operating leases were as follows for the years ended December 31:

	2022		2021

Operating lease costs	$	21,291	$	19,116
Variable lease cost		18,325		17,613
Short-term lease cost		33,530		29,730
Total	$	73,146	$	66,459

Supplemental balance sheet information consisted of the following at December 31:

Operating Lease	2022			2021
Right-of-use assets	$	16,398		$	4,984

Operating Lease Liability	$	16,562		$	5,654
Less: short term portion		(16,562	)		(5,654	)
Long term portion	$	—		$	—

Maturity analysis under lease agreements consisted of the following as of December 31:

	2022			2021
2022	$	-		$	5,698
2023		16,675			—
Total lease payments		16,675			5,698
Less: Present value discount		(113	)		(44	)
Present value of lease liabilities	$	16,562		$	5,654

Supplemental cash flow information related to leases for the years ended December 31:

		2022				2021
Operating cash outflow from operating leases		$	75,146			$	66,459