XML 23 R13.htm IDEA: XBRL DOCUMENT v3.22.2.2
OPERATING LEASE LIABILITIES
 9 Months Ended
Sep. 30, 2022
Operating Lease Liabilities  
OPERATING LEASE LIABILITIES

NOTE 7 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 in 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.

 

 

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 September 30, 2022:

 

  September 30,
2022		  
Lease costs:      
Cash paid for operating lease liabilities   $ 331,621  
Right-of-use assets obtained in exchange for new operating lease obligations     23,621,267  
Fixed rent payment   $ 255,314  
Lease – Depreciation expense   $ 110,263  

 

   Nine months ended
   September 30,
2022
Other information:     
Weighted-average discount rate   6.41%
Weighted-average remaining lease term (in months)   120 

 

   1 
Minimum Lease obligation   
2022 – Remaining period  $66,211 
2023   885,748 
2024   1,795,932 
2025   2,009,927 
2026   2,240,799 
Thereafter   16,594,129 
Total  $23,592,746