Leases

9 Months Ended

Sep. 30, 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 with an option to renew through October 31, 2027. As of August 31, 2023 the lease term has expired and was not renewed. Upon inception of the sublease, 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,
	2023		2022

Cash paid for operating lease liabilities	$	239,469	$	205,885

Leases

Financing Lease:

The Company has financed certain laboratory equipment as follows:

	As of September 30,
	2023		2022

Cash paid for finance lease liabilities	$	60,684	$	306,487

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

Year ended September 30,
2023	$	17,464
2024	$	69,850
2025	$	69,850
2026	$	40,108
2027 and after	$	26,724
Total future minimum lease payments		223,996
Less imputed interest		(32,058	)
Remaining lease liability	$	191,938

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 nine months ended September 30, 2023, the Company exercised a bargain purchase option, which resulted in recognition of property and equipment of $151,490.