Leases

3 Months Ended

Mar. 31, 2024

Leases

Leases

Note 8. 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 March 31, 2024 and December 31, 2023, the Company did not have any finance leases. The following table summarizes the Company’s operating leases:

	March 31, 2024		December 31, 2023
Operating Leases
Office space	$	196,722	$	—
Vehicles		199,289		155,253
Total right-of-use asset	$	396,011	$	155,253
Office space	$	198,857	$	—
Vehicles		182,041		135,706
Total lease liability	$	380,898	$	135,706

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

	Three Months Ended March 31, 2024		Three Months Ended March 31, 2023
Operating lease cost	$	39,271	$	—
Short-term lease cost		12,600		—
Total lease cost	$	51,871	$	—

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 March 31, 2024 are as follows:

	Operating Leases
Weighted-average lease term (years)		2.0
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	$	145,165
2025		197,138
2026		82,479
2027		3,737
Total lease payments		428,519
Less: imputed interest		(47,621	)
Total lease liability	$	380,898

Supplemental cash flow disclosures related to leases are presented below:

	Three Months Ended March 31, 2024		Three Months Ended March 31, 2023
Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from operating leases	$	34,383	$	—
Right-of-use assets obtained in exchange for operating liabilities	$	270,290	$	—