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Leases
 6 Months Ended
Jun. 30, 2022
Leases [Abstract]  
Leases Leases
The Company has entered into leases for commercial office spaces and vehicles. These leases are not unilaterally cancellable by the Company, are legally enforceable, and specify fixed or minimum amounts. The leases expire at various dates through 2026 and provide for renewal options. In the normal course of business, it is expected that these leases will be renewed or replaced by leases on other properties.
The leases provide for increases in future minimum annual rental payments based on defined increases in the Consumer Price Index, subject to certain minimum increases. Also, the agreements generally require the Company to pay real estate taxes, insurance, and repairs.
On November 3, 2021, the Company entered into an amendment of its Main Office Lease to include an additional 4,811 rentable square feet in the suite adjoining its main office facilities in San Diego, California. The lease term will run concurrently with the main office lease which commenced in December 2021. The lease terms include 3% annual fixed increases in the base rental payment. The lease also requires the Company to pay operating expenses such as utilities, real estate taxes, insurance, and repairs. The lease term commenced on April 15, 2022, and the Company will receive two months of rental abatement to the base rent.

Supplemental unaudited consolidated balance sheet information related to leases is as follows:
ClassificationJune 30, 2022
Operating lease assetsRight-of-use operating lease assets$5,195,474 
Finance lease assetsProperty, plant and equipment, net20,827 
Total lease assets$5,216,301 
Operating lease liabilities - currentOperating lease liabilities - current$455,064 
Operating lease liabilities - noncurrentOperating lease liabilities - noncurrent5,053,219 
Finance lease liabilities - currentOther liabilities - current7,022 
Finance lease liabilities - noncurrentOther long-term liabilities 15,120 
Total lease liabilities$5,530,425 

The components of lease expense are as follows:
Three Months Ended June 30,Three Months Ended June 30,Six Months Ended June 30,Six Months Ended June 30,
Classification2022202120222021
Operating lease expenseSelling, general and administrative $164,076 $33,396 $340,597 $91,827 
Finance lease expense: 
Amortization of finance lease assetsSelling, general and administrative1,451 2,190 7,391 2,190 
Interest on finance lease liabilitiesInterest expense599 510 1,238 510 
Total lease expense$166,126 $36,096 $349,226 $94,527 
Operating LeaseFinance Lease
Maturities of lease liabilities are as follows:June 30, 2022June 30, 2022
2022$127,621 $3,511 
2023792,918 7,022 
2024824,712 7,022 
2025822,352 7,022 
2026847,022 — 
Thereafter4,631,866 1,755 
Total lease payments8,046,491 26,332 
Less: interest(2,538,208)(4,190)
Total lease obligations$5,508,283 $22,142 

Lease term and discount rate:
June 30, 2022
Weighted-average remaining lease terms (in years):
Operating lease9.5
Finance lease3.8
Weighted-average discount rate:
Operating lease7.8%
Finance lease7.8%
Other Information:
Six Months Ended June 30,Six Months Ended June 30,
20222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$80,869 $94,818 
Operating cash flows from finance leases$1,238 $510 
Financing cash flows from finance leases$4,425 $1,989 
Leased assets obtained in exchange for new finance lease liabilities$20,827 $29,977 
Leased assets obtained in exchange for new operating lease liabilities$— $— 

Sublease
In April 2022, the Company entered into a sublease agreement with certain local San Diego companies to sublease the Company's portion of the 4,811 square foot expansion. The term of the sublease is six months to twelve months with fixed base rental income of $2,250 per month. The sublease has no option for renewal or extension at the end of the sublease term.
Sublease income are as follows:
Three Months Ended June 30,Three Months Ended June 30,Six Months Ended June 30,Six Months Ended June 30,
Classification2022202120222021
Sublease lease incomeOther, net$20,125 $— $20,125 $— 
Leases Leases
The Company has entered into leases for commercial office spaces and vehicles. These leases are not unilaterally cancellable by the Company, are legally enforceable, and specify fixed or minimum amounts. The leases expire at various dates through 2026 and provide for renewal options. In the normal course of business, it is expected that these leases will be renewed or replaced by leases on other properties.
The leases provide for increases in future minimum annual rental payments based on defined increases in the Consumer Price Index, subject to certain minimum increases. Also, the agreements generally require the Company to pay real estate taxes, insurance, and repairs.
On November 3, 2021, the Company entered into an amendment of its Main Office Lease to include an additional 4,811 rentable square feet in the suite adjoining its main office facilities in San Diego, California. The lease term will run concurrently with the main office lease which commenced in December 2021. The lease terms include 3% annual fixed increases in the base rental payment. The lease also requires the Company to pay operating expenses such as utilities, real estate taxes, insurance, and repairs. The lease term commenced on April 15, 2022, and the Company will receive two months of rental abatement to the base rent.

Supplemental unaudited consolidated balance sheet information related to leases is as follows:
ClassificationJune 30, 2022
Operating lease assetsRight-of-use operating lease assets$5,195,474 
Finance lease assetsProperty, plant and equipment, net20,827 
Total lease assets$5,216,301 
Operating lease liabilities - currentOperating lease liabilities - current$455,064 
Operating lease liabilities - noncurrentOperating lease liabilities - noncurrent5,053,219 
Finance lease liabilities - currentOther liabilities - current7,022 
Finance lease liabilities - noncurrentOther long-term liabilities 15,120 
Total lease liabilities$5,530,425 

The components of lease expense are as follows:
Three Months Ended June 30,Three Months Ended June 30,Six Months Ended June 30,Six Months Ended June 30,
Classification2022202120222021
Operating lease expenseSelling, general and administrative $164,076 $33,396 $340,597 $91,827 
Finance lease expense: 
Amortization of finance lease assetsSelling, general and administrative1,451 2,190 7,391 2,190 
Interest on finance lease liabilitiesInterest expense599 510 1,238 510 
Total lease expense$166,126 $36,096 $349,226 $94,527 
Operating LeaseFinance Lease
Maturities of lease liabilities are as follows:June 30, 2022June 30, 2022
2022$127,621 $3,511 
2023792,918 7,022 
2024824,712 7,022 
2025822,352 7,022 
2026847,022 — 
Thereafter4,631,866 1,755 
Total lease payments8,046,491 26,332 
Less: interest(2,538,208)(4,190)
Total lease obligations$5,508,283 $22,142 

Lease term and discount rate:
June 30, 2022
Weighted-average remaining lease terms (in years):
Operating lease9.5
Finance lease3.8
Weighted-average discount rate:
Operating lease7.8%
Finance lease7.8%
Other Information:
Six Months Ended June 30,Six Months Ended June 30,
20222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$80,869 $94,818 
Operating cash flows from finance leases$1,238 $510 
Financing cash flows from finance leases$4,425 $1,989 
Leased assets obtained in exchange for new finance lease liabilities$20,827 $29,977 
Leased assets obtained in exchange for new operating lease liabilities$— $— 

Sublease
In April 2022, the Company entered into a sublease agreement with certain local San Diego companies to sublease the Company's portion of the 4,811 square foot expansion. The term of the sublease is six months to twelve months with fixed base rental income of $2,250 per month. The sublease has no option for renewal or extension at the end of the sublease term.
Sublease income are as follows:
Three Months Ended June 30,Three Months Ended June 30,Six Months Ended June 30,Six Months Ended June 30,
Classification2022202120222021
Sublease lease incomeOther, net$20,125 $— $20,125 $—