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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 9. Commitments and Contingencies

 

Lease Commitments

 

The Company leases office space under a non-cancelable operating lease which expires on March 31, 2023. The Company incurred lease expense of $80,000 for the years ended December 31, 2022 and 2021, respectively. As of December 31, 2022, the right of use asset and related liability were $18,000 and $20,000, respectively.

 

In determining the present value of our operating lease right-of-use asset and liability, we used a 10% discount rate (which approximates our borrowing rate). The remaining term on the lease is 0.25 years. The Company expects to extend the lease on a short-term basis.

 

Legal Proceedings

 

As described in Note 1, the Company has an on-going dispute with the Manufacturer, the outcome of which cannot be predicted at this time.

 

From time to time, various lawsuits and legal proceedings may arise in the ordinary course of business. However, litigation is subject to inherent uncertainties and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently the defendant in one legal proceeding for an amount less than $100,000. Our legal counsel and management believe a material unfavorable outcome to be remote.