XML 29 R16.htm IDEA: XBRL DOCUMENT

LEASES

12 Months Ended

Dec. 31, 2022

10.

LEASES

The Company leases manufacturing and office space under an agreement classified as an operating lease. On November 10, 2021, the Company executed the second amendment to the lease agreement for its manufacturing and office space, which extends the lease agreement’s expiration date to April 30, 2026. The lease agreement does not include any renewal options. The agreement provides for an initial monthly base amount plus annual escalations through the term of the lease. In addition to the monthly base amounts in the lease agreement, the Company is required to pay real estate taxes and operating expenses during the lease terms.

The Company also leases office equipment in agreements classified as operating leases.

For the years ended December 31, 2022 and 2021, the Company’s operating lease expense was $2,101,596 and $1,873,455, respectively.

Future minimum lease payments under non-cancellable operating leases as of December 31, 2022 were as follows:

Year ending December 31,

2023	$	2,140,254
2024		2,222,280
2025		2,276,850
2026		843,772
2027		116,724
Total undiscounted operating lease payments		7,599,880
Less imputed interest		(704,834	)
Present value of operating lease payments	$	6,895,046

The following table sets forth the ROU assets and operating lease liabilities as of December 31, 2022 and 2021:

	2022		2021
Assets
ROU assets, net	$	6,526,627	$	7,796,768

Liabilities
Current operating lease liabilities	$	1,817,811	$	1,580,453
Long-term operating lease liabilities		5,077,235		6,445,728
Total lease liabilities	$	6,895,046	$	8,026,181

The amortization expense of these assets under operating leases was $1,738,989 and $1,717,365 for the years ended December 31, 2022 and 2021, respectively.

The Company’s weighted average remaining lease term for its operating leases is 3.4 years as of December 31, 2022. The Company’s weighted average discount rate for its operating leases is 5.3% as of December 31, 2022.