Quarterly report pursuant to Section 13 or 15(d)

Operating Leases

Operating Leases
3 Months Ended
Mar. 31, 2022
Operating Leases  
Operating Leases

Note 6 – Operating Leases


We lease our office space under an operating lease agreement. This lease does not have significant rent escalation, concessions, leasehold improvement incentives, or other build-out clauses. Further, the lease does not contain contingent rent provisions. Our office space lease includes both lease (e.g., fixed payments including rent, taxes, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs), which are accounted for as a single lease component as we have elected the practical expedient to group lease and non-lease components for all leases. We also lease office equipment under an operating lease. Our leases do not provide an implicit rate and, as such, we have used our incremental borrowing rate of 8% in determining the present value of the lease payments based on the information available at the lease commencement date.


Lease costs included in our condensed consolidated statements of operations totaled $24,390 and $24,030 for the three months ended March 31, 2022 and 2021, respectively. The weighted average remaining lease terms and discount rate for our operating leases were as follows at March 31, 2022:

 Schedule of Weighted Average Remaining Lease Terms and Discount Rate for Operating Leases

Remaining lease term (years) for our facility lease     0.5  
Remaining lease term (years) for our equipment lease    



Weighted average remaining lease term (years) for our facility and equipment leases



Weighted average discount rate for our facility and equipment leases     8.0 %


Annual lease liabilities for all operating leases were as follows as of March 31, 2022:

Schedule of Maturities of Lease Liabilities for all Operating Leases 

2022   $ 51,309  
2023     6,420  
2024     1,605  
Total lease payments     59,334  
Less: Interest     (4,066 )
Present value of lease liabilities     55,268  
Less: current maturities     (49,121 )
Non-current lease liability   $ 6,147