XML 27 R15.htm IDEA: XBRL DOCUMENT

Operating Lease

9 Months Ended

Sep. 30, 2024

Operating Lease

During 2022, the Company entered into a non-cancelable operating lease that includes two property locations, one which is being used as the Company’s office and the other as its lab for research and development and the production of inventory. The lease had a commencement date of June 1, 2022, and expires on May 31, 2025, after which the term will continue on a month-to-month basis.

On July 3, 2023, the Company amended the terms of the previously entered lease agreement to lease additional office space from the lessor. Rent increased from $10,773 to $13,477 per month commencing July 1, 2023, through May 31, 2025. The lease amendment required a remeasurement of the lease liability which resulted in an increase of $47,986 to the lease liability and an equal increase in the right-of-use asset as of July 1, 2023. The Company used a discount rate of 11.50% upon the remeasurement of the lease liability on July 1, 2023, compared to an original discount rate of 8% on lease commencement, as its incremental cost of borrowing due to the amendment.

The Company recognized a total lease cost related to its non-cancelable operating lease of $119,222 and $103,000 for the nine months ended September 30, 2024, and 2023, respectively. The lease cost has been allocated as follows based on the square footage of each property location.

	September 30, 2024		September 30, 2023
Office space, recorded in office and administration	$	90,863	$	74,640
Lab space, recorded in research and development		18,688		23,705
Lab space, capitalized to production of inventory		9,671		4,655
	$	119,222	$	103,000

As of September 30, 2024, and December 31, 2023, the Company recorded a security deposit of $10,773 (Note 5).

Future minimum lease payments under the Company’s operating lease that have an initial non-cancelable lease term in excess of one year at September 30, 2024, are as follows:

As of September 30, 2024	Total
2024		40,430
2025		67,384
Thereafter		-
		107,814
Less: Imputed interest		(4,505	)
Operating lease liability		103,309

Operating lease lability – current		103,309
Operating lease lability – non-current	$	-

The remaining lease term as of September 30, 2024, is 0.67 years (December 31, 2023 – 1.42 years).