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Leases
 3 Months Ended
Mar. 31, 2022
Leases  
Leases

Note 9 – Leases

 

The Company leases its 20,945 square foot operating and office facility under a non-cancelable real property lease agreement that expires on August 31, 2025, with two five-year options to extend, at a monthly lease term of $10,036, with approximately a 3% annual escalation of lease payments commencing September 15, 2021, subject to the ASU 2016-02. In the locations in which it is economically feasible to continue to operate, management expects to enter into a new lease upon expiration. The operating and office facility lease contains provisions requiring payment of property taxes, utilities, insurance, maintenance and other occupancy costs applicable to the leased premise. As the Company’s leases do not provide implicit discount rates, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments.

 

The components of lease expense were as follows:

    
   For the Three 
   Months Ended 
   March 31, 
   2022 
Operating lease cost:     
Fixed rent expense  $36,720 

 

 

 

Supplemental balance sheet information related to leases was as follows:

    
   March 31, 
   2022 
Operating leases:     
Operating lease assets  $1,312,439 
      
Current portion of operating lease liabilities  $47,569 
Noncurrent operating lease liabilities   1,341,358 
Total operating lease liabilities  $1,388,927 
      
Weighted average remaining lease term:     
Operating leases   13.75 years 
      
Weighted average discount rate:     
Operating leases   5.75% 

 

Supplemental cash flow and other information related to leases was as follows:

    
   For the Three 
   Months Ended 
   March 31, 
   2022 
Cash paid for amounts included in the measurement of lease liabilities:     
Operating cash flows used for operating leases  $10,941 
      
Leased assets obtained in exchange for lease liabilities:     
Total operating lease liabilities  $1,431,463 

  

The future minimum lease payments due under operating leases as of March 31, 2022 was as follows:

    
Fiscal Year Ending  Minimum Lease 
December 31,  Commitments 
2022 (for the nine months remaining)  $94,275 
2023   129,046 
2024   132,917 
2025   136,905 
2026 and thereafter   1,554,000 
Total    $2,047,143 
Less effects of discounting   658,216 
Lease liability recognized  $1,388,927