Leases

3 Months Ended

Mar. 31, 2023

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. The Company did not exercise its option to renew through October 31, 2027. As of March 31, 2023 there are five (5) 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 March 31,
	2023		2022

Cash paid for operating lease liabilities	$	89,102	$	43,046

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

Year ended December 31,
2023	$	150,367
2024		–
2025		–
2026		–
2027 and after		–
Total future minimum lease payments		150,367
Less imputed interest		(3,387	)
	$	146,980

Leases

Financing Lease:

The Company has financed certain laboratory equipment as follows:

	As of March 31,
	2023		2022
Cash paid for finance lease liabilities	$	20,667	$	–

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

Year ended December 31,
2023	$	52,388
2024		69,850
2025		69,850
2026		40,108
2027 and after		26,724
Total future minimum lease payments		258,920
Less imputed interest		(41,520	)
Remaining lease liability	$	217,400

The Company entered into four financing leases for laboratory equipment with a total cost of $251,959 with four to five-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 $6,000. In the three months ended March 31, 2023, the Company exercised a bargain purchase option, which resulted in the recognition of property and equipment of $151,490.