Leases

9 Months Ended

Sep. 30, 2022

Note 5 – Leases

Operating Lease:

Effective March 5, 2020, the Company entered into a sublease for approximately 11,200 square feet of office space located at 25B Vreeland Road, Suite 300, Florham Park, NJ. The sublease commenced on May 1, 2020 and will continue for a term of forty (40) months with an option to renew through October 31, 2027. As of September 30, 2022 there are eleven (11) months remaining in the lease term. Upon inception of the lease, the Company recognized approximately $0.7 million of a ROU asset and operating lease liabilities. The discount rate used to measure the operating lease liability as of May 1, 2020 was 9.15%. Throughout the period described above the Company has maintained, and continues to maintain, a month-to-month lease for its research facilities at the Princeton Innovation Center BioLabs located at 303A College Road E, Princeton NJ, 08540.

Supplemental cash flow information related to operating leases is as follows:

	As of September 30,
	2022		2021

Cash paid for operating lease liabilities	$	205,885	$	127,804

Maturity of the Company’s operating lease liability is as follows:

Year ended December 31,
2022 (remaining three months)	$	89,103
2023		239,470
2024		–
2025		–
2026 and after		–
Total future minimum lease payments		328,573
Less imputed interest		(14,597	)
	$	313,976

Leases

Financing Lease:

The Company has financed certain laboratory equipment as follows:

	As of September 30,
	2022		2021
Cash paid for finance lease liabilities	$	306,487	$	–

Year ended December 31,
2022 (remaining three months)	$	34,916
2023		44,358
2024		35,694
2025		35,694
2026 and after		5,952
Total future minimum lease payments		156,614
Less imputed interest		(18,212	)
Remaining lease liability	$	138,402

The Company entered into three financing leases for laboratory equipment with a total cost of $306,487 with two to four-year terms and a capitalized interest rate of 9.15%. Each of the lease agreements include a bargain purchase option to acquire the equipment at the end of the lease term. The aggregate monthly payments are approximately $12,000.