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Leases | 9 Months Ended
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Sep. 30, 2023
Leases [Abstract] |
Leases | 12. Leases For operating leases, the Company records a right-of-use assets and corresponding lease liabilities in the consolidated balance sheets for all leases with terms longer than twelve months. The Company has three operating leases, with no variable lease costs, and no finance leases as of September 30, 2023. The Company has two operating leases, with no variable lease costs, and no finance leases and December 31, 2022. On April 3, 2023, the Company executed a lease for new office space next to the existing space at Invizyne in the Los Angeles, California metropolitan area. The lease with a term of 60 months which began on July 1, 2023 and ending on June 30, 2028, without an option to extend. The initial base rent was $13,277 per month. The lease provides for annual increases. The base rent for the lease in the final year is $14,943 per month. In April 2023, Invizyne made changes to an existing lease agreement, which resulted in an extension of the lease term by an additional 21 months. The revised lease maintained the same escalation rate for lease payments as the previous arrangement. To account for this modification, the Company reevaluated the remaining lease term at the time of execution. As the Company was actively utilizing the premises, adjustments were made to reflect the revaluation of both the right-to-use asset and the corresponding lease liability in line with the updated lease term. This was originally entered into in August 2021, with a term of 60 months beginning on May 1, 2023 and ending on April 30, 2028, with an option to extend for 60 additional months. At the time the lease commenced, it was not probable the Company would exercise the one five-year option to extend the facility lease; therefore, this extension option is not included in the lease analysis. The initial base rent is $14,371 per month. The lease provides for annual increases. The base rent for the lease in the final year is $16,259 per month. Additionally, Invizyne is responsible for annual operating cost increases of 2.5%, which are included in the rent. On July 1, 2022, the Company executed a lease for new office space in the Dallas, Texas metropolitan area. The lease with a term of 91 months which began on December 20, 2022 and ending on July 20, 2030, without an option to extend. The initial base rent was $12,556 per month, after 7 months of free rent. The lease provides for annual increases. The base rent for the lease in the final year is $13,937 per month. Schedule of Operating Lease Cost
|  | September 30, 2023 |  |  | December 31, 2022 |
Operating leases: |  |  |  |  |  |  |  |
Right-of-use assets |  | $ | 2,126,213 |  |  | $ | 1,409,732 |
Operating lease liabilities |  | $ | 2,210,005 |  |  | $ | 1,423,538 |
Weighted average remaining lease term in years |  |  | 5.44 |  |  |  | 5.62 |
Weighted average discount rate |  |  | 7.66 | % |  |  | 6.71 | %
Cash paid for amounts included in the measurement of lease liabilities |  | $ | 206,837 |  |  | $ | 147,661 |
Right-of-use assets obtained in exchange for lease liabilities |  | $ | 896,803 |  |  | $ | 813,003 |
Operating lease cost |  | $ | 276,823 |  |  | $ | 106,980 |
Short-term lease costs |  |  | 29,049 |  |  |  | 19,200 |
Total operating lease costs |  | $ | 305,872 |  |  | $ | 126,180 |
Future payments due under operating leases as of September 30, 2023 are as follows: Schedule of Future payments Due Under Operating Lease
Year |  | Amount |
Remainder of 2023 |  | $ | 121,688 |
2024 |  |  | 491,624 |
2025 |  |  | 503,684 |
2026 |  |  | 516,001 |
2027 |  |  | 528,586 |
Thereafter |  |  | 576,564 |
Total |  | $ | 2,738,147 |
Less effects of discounting |  |  | (528,142 | )
Total operating lease liabilities |  | $ | 2,210,005 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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