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Leases

6 Months Ended

Jun. 30, 2024

Note 13 – Leases

Leases are classified as operating leases or finance leases in accordance with ASC 842 Leases. The Company’s operating leases mainly related to the rights to use building and office facilities. For leases with terms greater than 12 months, the Company records the related asset and liability at the present value of lease payments over the term. Certain leases include rental escalation clauses, renewal options and/or termination options, which are factored into the Company’s determination of lease payments when appropriate.

	June 30, 2024			December 31, 2023
	(unaudited)
Weighted average remaining lease term:
Operating lease		4.40 years			4.81 years

Weighted average discount rate:
Operating lease		7.44	%		7.56	%

The balances for the operating leases where the Company is the lessee are presented as follows within the unaudited interim consolidated balance sheets:

	June 30, 2024		December 31, 2023
	(unaudited)
Operating lease right-of-use assets, net
Operating lease	$	1,456,687	$	1,561,058

Lease liabilities
Current portion of operating lease liabilities		288,205		358,998
Non-current portion of operating lease liabilities		1,254,790		1,317,678
	$	1,542,995	$	1,676,676

Future lease payments under operating leases as of June 30, 2024 were as follows:

	Operating Leases

Remainder of FY2024	$	199,131
FY2025		385,550
FY2026		393,261
FY2027		401,127
FY2028		409,149
FY2029		34,605
Total lease payments	$	1,822,823
Less: imputed interest		279,828
Present value of lease liabilities ⁽¹⁾	$	1,542,995

(1)	As of June 30, 2024, present value of future operating lease payments consisted of current portion of operating lease liabilities and non-current portion of operating lease liabilities, amounting to $288,205 and $1,254,790, respectively.

Lease expense for all the Company’s operating leases for the three and six months ended June 30, 2024 were $146,674 and $248,155, respectively. Lease expense for all the Company’s operating leases for the three and six months ended June 30, 2023 were $nil.