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Leases

3 Months Ended

Mar. 31, 2024

Note 5 – 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 a financing 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 for each of the three month periods ending March 31, 2024 and 2023. The weighted average remaining lease terms and discount rate for our operating leases were as follows at March 31, 2024:

Remaining lease term (years) for our facility lease	1.5
Remaining lease term (years) for our equipment lease	1.8
Weighted average discount rate for our facility and equipment leases	8.0	%

Annual lease liabilities for the operating lease were as follows at March 31, 2024:


2024	$	68,247
2025		70,040
Total lease payments		138,287
Less: Interest		(8,816	)
Present value of lease liabilities		129,471
Less: current maturities		(84,878	)
Non-current lease liability	$	44,593

Annual lease liabilities for the financing lease were as follows at March 31, 2024:


2024	$	4,849
2025		6,820
2026		488
Total lease payments		12,157
Less: Interest		(1,248	)
Present value of lease liabilities		10,909
Less: current maturities		(4,802	)
Non-current lease liability	$	6,107