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Operating Leases

3 Months Ended

Mar. 31, 2023

Note 5 – Operating Leases

We lease our office space under an operating lease agreement. This lease does not have significant rent escalation, concessions, leasehold improvement incentives, or other build-out clauses. Further, the lease does not contain contingent rent provisions. Our office space lease includes both lease (e.g., fixed payments including rent, taxes, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs), which are accounted for as a single lease component as we have elected the practical expedient to group lease and non-lease components for all leases. We also lease office equipment under an operating lease. Our leases do not provide an implicit rate and, as such, we have used our incremental borrowing rate of 8% in determining the present value of the lease payments based on the information available at the lease commencement date.

Lease costs included in our condensed consolidated statements of operations totaled $22,461 and $21,918 for the three months ended March 31, 2023 and 2022, respectively. The weighted average remaining lease terms and discount rate for our operating leases were as follows at March 31, 2023:

Remaining lease term (years) for our facility lease	2.5
Remaining lease term (years) for our equipment lease	1.0
Weighted average remaining lease term (years) for our facility and equipment leases	2.5
Weighted average discount rate for our facility and equipment leases	8.0	%

Annual lease liabilities for all operating leases were as follows at March 31, 2023:


2023	$	70,600
2024		92,356
2025		70,040
Total lease payments		232,996
Less: Interest		(22,472	)
Present value of lease liabilities		210,524
Less: current maturities		(81,166	)
Non-current lease liability	$	129,358