Note 10 - Leases

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

NOTE 10 – LEASES

The Company’s corporate offices and other offices are located in Pittsburgh, Pennsylvania. Upon expiration of previous leases for office space and laboratory operations, the Company entered into two new leases for office space and laboratory operations on January 4, 2023. The leases each have an approximate five-year term ending February 28, 2028 and the Company recorded corresponding ROU assets and liabilities of $2,922,365.

The Company has an office in Eagan, Minnesota, which is used for office space and manufacturing. Since July 31, 2022, the lease was month-to-month tenancy. On June 1, 2023, the lease was amended for two additional years until May 31, 2025 and the Company recorded a corresponding ROU asset and liability of $74,816.

The Company has an additional office in Birmingham, Alabama, which is used for office space, warehousing and laboratory operations. The lease is effective through August 25, 2025.

Lease expense, recorded within general and administrative expenses, was $230,390 and $183,924 for the three months ended September 30, 2023 and September 30, 2022, respectively, and $665,252 and $536,156 for the nine months ended September 30, 2023 and September 30, 2022, respectively.

The following table summarizes other information related to the Company’s operating leases:

	September 30, 2023
Weighted average remaining lease term – operating leases in years		4.23
Weighted average discount rate – operating leases		12	%

The Company’s operating lease obligations as of September 30, 2023 are as follows:

Remainder of 2023	$	209,506
2024		887,424
2025		857,622
2026		803,724
2027		827,909
Thereafter		139,022
Total lease payments		3,725,207
Less: interest		(826,044	)
Present value of lease liabilities	$	2,899,163