Leases

12 Months Ended

Dec. 31, 2023

Leases

Leases

Note 9. Leases

The Company’s right-of-use assets and lease liabilities are recognized on the accompanying balance sheets based on the present value of the expected lease payments over the lease term. As of December 31, 2023 and 2022, the Company did not have any finance leases. The following table summarizes the Company’s operating leases:

	As of December 31,
	2023		2022
Operating Leases
Vehicles	$	155,253	$	—
Total right-of-use asset	$	155,253	$	—
Vehicles	$	135,706	$	—
Total lease liability	$	135,706	$	—

The following table summarizes the components of the Company’s lease costs incurred for the periods below:

	Year Ended December 31, 2023		June 7, 2022 (date of inception) through December 31, 2022
Operating lease cost	$	3,484	$	—
Short-term lease cost		59,865		—
Total lease cost	$	63,349	$	—

The Company recognizes operating lease cost on a straight-line basis. Short-term lease costs are recognized as incurred and represent payments for office leases with a lease term of one year or less.

The Company’s weighted-average remaining lease terms and discount rates as of December 31, 2023 are as follows:

	Operating Leases
Weighted-average lease term (years)		3.0
Weighted-average discount rate		10.2	%

Future commitments by year for the Company’s leases with a lease term of one year or more as of December 31, 2023 are presented in the table below. Such commitments are reflected at undiscounted values and are reconciled to the discounted present value recognized on the accompanying balance sheets as follows:

	Operating Leases
2024	$	53,798
2025		53,798
2026		49,951
Total lease payments		157,547
Less: imputed interest		(21,841	)
Total lease liability	$	135,706

Supplemental cash flow disclosures related to leases are presented below:

	Year Ended December 31, 2023		June 7, 2022 (date of inception) through December 31, 2022
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases	$	1,924	$	—
Right-of-use assets obtained in exchange for operating liabilities	$	158,531	$	—