Note
11 – Leases
The
Company leases office space under a non-cancellable operating lease and leases cancellable with one month notice. The Company expenses
the cancellable leases in the period incurred in accordance with the practical expedient elected. As such, one lease makes up the entirety
of the right-of-use asset and lease liability disclosed.
For
the three and nine months ended September 30, 2022, components of lease expense are summarized as follows:
Schedule
of Lease Expense
| | |
Three Months Ended September 30, 2022 | | |
Nine Months Ended September 30, 2022 | |
| Operating lease costs | |
$ | 82,797 | | |
$ | 253,748 | |
| Short-term lease costs | |
| 113,294 | | |
| 277,454 | |
| Total lease costs | |
$ | 196,091 | | |
$ | 531,202 | |
Short-term
lease costs under month-to-month lease agreements are paid to related parties.
As
of September 30, 2022, the maturities of the Company’s lease liabilities are as follows:
Schedule
of Maturities on Company Lease Liabilities
| | |
Year Ending December 31, | |
| 2022 (remainder) | |
$ | 73,783 | |
| 2023 | |
| 303,059 | |
| 2024 | |
| 50,773 | |
| 2025 | |
| - | |
| 2026 | |
| - | |
| Thereafter | |
| - | |
| Total lease payments | |
| 427,615 | |
| Less: imputed interest | |
| 8,799 | |
| Present value of operating lease liabilities | |
| 418,816 | |
| Less: current portion | |
| 292,536 | |
| Long-term portion | |
$ | 126,280 | |
Other
information related to operating leases was as follows:
Schedule
of Other Information Related to Operating Lease
| | |
Three Months Ended September 30, 2022 | | |
Nine Months Ended September 30, 2022 | |
| Cash paid for operating leases included in operating cash flows | |
$ | 192,659 | | |
$ | 514,009 | |
| Remaining lease term of operating leases | |
| 1 year | | |
| 1 year | |
| Discount rate of operating leases | |
| 3.1 | % | |
| 3.1 | % |
As
previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021, future lease payments under ASC 840 for
operating leases were as follows:
Schedule of Future Minimum Lease Payments
| | |
| | |
| Year Ending December 31, | |
| 2022 | |
$ | 293,595 | |
| 2023 | |
| 303,059 | |
| 2024 | |
| 50,774 | |
| Total lease payments | |
$ | 647,428 | |
|