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LEASES
 9 Months Ended
Sep. 30, 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 nine months ended September 30, 2023 and 2022, the Company’s operating lease expense was $1,612,713 and $1,579,879, respectively. For the three months ended September 30, 2023 and 2022, the Company’s operating lease expense was $529,624 and $529,004, respectively.

 

Future minimum lease payments under non-cancellable operating leases as of September 30, 2023 were as follows:

 

For the Year Ending December 31,        
Remainder of 2023     $ 548,110  
2024       2,228,784  
2025       2,283,354  
2026       850,276  
2027       111,065  
Thereafter       9,228  
Total undiscounted operating lease payments       6,030,817  
Less imputed interest       (456,477 )
Present value of operating lease payments     $ 5,574,340  

 

 

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

 

    September 30,
2023		     December  31,
2022		  
Assets            
Right of Use assets, net   $ 5,196,418     $ 6,526,627  
                 
Liabilities                
Current operating lease liabilities   $ 1,961,070     $ 1,817,811  
Long-term operating lease liabilities     3,613,270       5,077,235  
Total lease liabilities   $ 5,574,340     $ 6,895,046  

 

The Company’s weighted average remaining lease term for its operating leases is 2.7 years as of September 30, 2023. The Company’s weighted average discount rate for its operating leases is 5.42% as of September 30, 2023.