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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 13 – Commitments and Contingencies

 

Lease Obligations

 

The Company leases office space under a non-cancellable operating lease and leases cancellable with one month notice. The Company expenses the cancelable leases in the period incurred in accordance with the practical expedient elected. As such, one lease makes up the entirety of the right-of-use asset and lease liability disclosed.

 

For the year ended December 31, 2022, components of lease expense are summarized as follows:

 

   Year Ended December, 2022 
Operating lease costs  $346,349 
Short-term lease costs   384,902 
Total lease costs  $731,251 

 

Short-term lease costs under month-to-month lease agreements are paid to related parties.

 

As of December 31, 2022, the maturities of the Company’s lease liabilities are as follows:

 

   Year Ending
December 31,		 
2023  $303,059 
2024   50,773 
2025   - 
2026   - 
2027   - 
Thereafter   - 
Total lease payments   353,832 
Less: imputed interest   5,915 
Present value of operating lease liabilities   347,917 
Less: current portion   297,209 
Long-term portion  $50,708 

 

 

Other information related to operating leases was as follows:

 

  

Year Ended

December 31, 2022

 
Cash paid for operating leases included in operating cash flows  $700,821 
Remaining lease term of operating leases   1 year  
Discount rate of operating leases   3.1%

 

Litigation

 

Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred.

 

The Company is a defendant in two class action claims and three derivative actions claiming that the Company promulgated false and misleading press releases to increase the price of our stock to improperly benefit the officers and directors of the Company. The plaintiffs demand compensatory damages sustained as a result of the Company’s alleged wrongdoing in an amount to be proven at trial. The Company believes these lawsuits are without merit and intends to defend the cases vigorously. The Company is unable to estimate a range of loss, if any, that could result were there to be an adverse final decision in these cases. As of the date of this report, the Company does not believe it is probable that these cases will result in an unfavorable outcome; however, if an unfavorable outcome were to occur in these cases, it is possible that the impact could be material to the Company’s results of operations in the period(s) in which any such outcome becomes probable and estimable.