Quarterly report pursuant to Section 13 or 15(d)

Operating Leases

Operating Leases
3 Months Ended
Mar. 31, 2023
Operating Leases  
Operating Leases

Note 5 – 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 $22,461 and $21,918 for the three months ended March 31, 2023 and 2022, respectively. The weighted average remaining lease terms and discount rate for our operating leases were as follows at March 31, 2023:


Remaining lease term (years) for our facility lease     2.5  
Remaining lease term (years) for our equipment lease     1.0  
Weighted average remaining lease term (years) for our facility and equipment leases     2.5  
Weighted average discount rate for our facility and equipment leases     8.0 %


Annual lease liabilities for all operating leases were as follows at March 31, 2023:


2023   $ 70,600  
2024     92,356  
2025     70,040  
Total lease payments     232,996  
Less: Interest     (22,472 )
Present value of lease liabilities     210,524  
Less: current maturities     (81,166 )
Non-current lease liability   $ 129,358