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LEASES
 6 Months Ended
Jun. 30, 2023
Leases  
LEASES

NOTE 11 – LEASES

 

We have entered into various non-cancellable operating lease agreements for certain offices. These leases currently have lease periods expiring between 2023 and 2028. The lease agreements may include one or more options to renew. Renewals were not assumed in our determination of the lease term unless the renewals were deemed to be reasonably assured at lease commencement. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease costs, weighted-average lease term, and discount rates are detailed below.

 

When measuring lease liabilities for leases that were classified as operating leases, we discounted lease payments using our estimated incremental borrowing rate at the commencement date of each lease. The weighted average incremental borrowing rate applied was 9.78%. As of June 30, 2023, our leases had a remaining weighted average term of 4.15 years.

 

Operating leases are included in the unaudited condensed Consolidated Balance Sheets as follows:

 

   Classification  June 30, 2023   December 31, 2022 
Lease assets             
Operating lease cost ROU assets  Assets  $889,010   $255,687 
Total lease assets     $889,010   $255,687 
              
Lease liabilities             
Operating lease liabilities, current  Current liabilities  $191,995   $121,731 
Operating lease liabilities, non-current  Liabilities   732,675    159,205 
Total lease liabilities     $924,670   $280,936 

 

 

The components of lease costs, which are included in loss from operations in our unaudited condensed consolidated Statements of Operations, were as follows:

 

   2023   2022 
   Six Months Ended June 30, 
   2023   2022 
Leases costs          
Operating lease costs  $117,331   $226,079 
Short term lease cost   45,823    - 
Total lease costs  $163,154   $226,079 

 

Future minimum payments under non-cancelable leases for operating leases for the remaining terms of the leases following the six months ended June 30, 2023 were as follows:

 

Fiscal Year  Operating Leases
2023 (remainder of)  $ 153,307
2024    294,383
2025    252,513
2026    199,177
2027    205,145
Thereafter    51,661
Total future minimum lease payments    1,156,186
Amount representing interest    (231,516)
Present value of net future minimum lease payments  $ 924,670