XML 32 R21.htm IDEA: XBRL DOCUMENT

Leases

9 Months Ended

Sep. 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.

	September 30, 2024			December 31, 2023
	(unaudited)
Weighted average remaining lease term:
Operating lease		4.01 years			4.81 years

Weighted average discount rate:
Operating lease		7.50	%		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:

	September 30, 2024		December 31, 2023
	(unaudited)
Operating lease right-of-use assets, net
Operating lease	$	1,453,125	$	1,561,058

Lease liabilities
Current portion of operating lease liabilities		406,414		358,998
Non-current portion of operating lease liabilities		1,181,309		1,317,678
	$	1,587,723	$	1,676,676

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

	Operating Leases

Remainder of FY2024	$	154,836
FY2025		449,915
FY2026		393,261
FY2027		401,127
FY2028		409,149
FY2029		34,605
Total lease payments	$	1,842,893
Less: imputed interest		255,170
Present value of lease liabilities ⁽¹⁾	$	1,587,723

(1)

As of September 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 $406,414 and $1,181,309, respectively.

Lease expense for all the Company’s operating leases for the three and nine months ended September 30, 2024 were $133,586 and $381,791, respectively. Lease expense for all the Company’s operating leases for the three and nine months ended September 30, 2023 were $65,034.