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Leases
12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases [Text Block]

10. Leases

The Company leases its office in San Diego. The lease, as amended, expires in January 2024. The initial ROU asset and liability were recorded in 2019 relating to this lease were calculated based on the future lease payments due under the lease discounted using an estimated incremental borrowing rate of 12.0%. In February 2021, the Company vacated the premises and pursuant to the terms of the lease agreement was considered in default. As a result, the balance of the ROU asset of $354,895 was impaired in 2021.

Under the lease agreement, the Company was still obligated to pay the required lease payments. At December 31, 2021, the balance of accrued rent due under the agreement was $256,519 and the balance of the lease liability was $305,288. During 2022, the Company agreed to a settlement with the lessor to settle the amount due for $180,000. The Company recognized a gain on settlement of lease of $399,230 to reduce total outstanding liabilities associated with the lease of $579,230 ($305,669 in accrued rent payable and $273,561 in lease liability) to $180,000. The Company is making monthly payments of $10,000 in accordance with the settlement agreement. At December 31, 2022, the amount due on the settlement is $160,000.

In February 2022, the Company entered into a short-term lease for an office space with payments due of $5,039 per month.

During the years ended December 31, 2022 and 2021, rent expense of $72,900 and $81,146, respectively, was recognized.