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Leases

9 Months Ended

Sep. 30, 2022

The Company leases an office, a manufacturing plant and certain equipment under non-cancelable operating lease agreements. The leases have remaining lease terms ranging from one year to ten years.

Supplemental balance sheet information related to leases is as follows:

Balance Sheet Location		September 30, 2022
Operating Leases
Right-of-use assets, net		$	2,637,546

Current liabilities	Lease liability, current maturities		457,804
Non-current liabilities	Lease liability, net of current maturities		2,195,438
Total operating lease liabilities		$	2,653,242

Finance Leases
Right-of-use assets		$	17,696

Current liabilities	Lease liability, current maturities		16,571
Non-current liabilities	Lease liability, net of current maturities		—
Total finance lease liabilities		$	16,571

Weighted Average Remaining Lease Term
Operating leases			7.08 years
Finance leases			0.86 years
Weighted Average Discount Rate
Operating leases			3%
Finance leases			3%

As the leases do not provide an implicit rate, the Company used an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments, which is reflective of the specific term of the leases and economic environment of each geographic region.

Anticipated future lease costs, which are based in part on certain assumptions to approximate minimum annual rental commitments under non-cancelable leases, are as follows:

Year Ending December 31:		Operating		Financing		Total
2022	$	135,275	$	5,040	$	140,315
2023		525,718		11,760		537,478
2024		523,722		—		523,722
2025		446,349		—		446,349
2026		207,379		—		207,379
Thereafter		1,119,903		—		1,119,903
Total lease payments		2,958,346		16,800		2,975,146
Less: Imputed interest		305,104		229		305,333
Present value of lease liabilities	$	2,653,242	$	16,571	$	2,669,813

Chicago Airport Testing has subleased its leased vacant area for a period of one year, the sublessee has the option to terminate at any time after the first six months. The sublessee elected to terminate the Agreement, effective as of July 31, 2021 and the Company has no remaining lease revenue from the sublessee.