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LEASES
 3 Months Ended
Mar. 31, 2023
Leases  
LEASES

 

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 three months ended March 31, 2023 and 2022, the Company’s operating lease expense was $546,082 and $534,991, respectively.

 

Future minimum lease payments under non-cancellable operating leases as of March 31, 2023 were as follows:

 

For the Year Ending December 31,     
Remainder of 2023   $1,624,406 
2024    2,222,280 
2025    2,276,850 
2026    843,772 
2027    109,394 
Thereafter    7,331 
Total undiscounted operating lease payments    7,084,033 
Less imputed interest     (614,221)
Present value of operating lease payments   $6,469,812 

 

The following table sets forth the ROU assets and operating lease liabilities as of:

 

  

March 31,
2023

   December 31,
2022		 
Assets        
ROU assets, net  $6,071,158   $6,526,627 
           
Liabilities          
Current operating lease liabilities  $1,872,484   $1,817,811 
Long-term operating lease liabilities   4,597,328    5,077,235 
Total lease liabilities  $6,469,812   $6,895,046 

 

The amortization expense of these assets under operating leases was $455,392 and $435,968 for the three months ended March 31, 2023 and 2022, respectively.

 

The Company’s weighted average remaining lease term for its operating leases is 3.2 years as of March 31, 2023. The Company’s weighted average discount rate for its operating leases is 5.4% as of March 31, 2023.