Leases

6 Months Ended

Jun. 30, 2022

Leases

Leases

Note 9 – Leases

The Company leases its 20,945 square foot operating and office facility under a non-cancelable real property lease agreement that expires on August 31, 2025, with two five-year options to extend, at a monthly lease term of $10,036, with approximately a 3% annual escalation of lease payments commencing September 15, 2021, subject to the ASU 2016-02. In the locations in which it is economically feasible to continue to operate, management expects to enter into a new lease upon expiration. The operating and office facility lease contains provisions requiring payment of property taxes, utilities, insurance, maintenance and other occupancy costs applicable to the leased premise. As the Company’s leases do not provide implicit discount rates, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments.

The components of lease expense were as follows:

	For the Six
	Months Ended
	June 30,
	2022
Operating lease cost:
Fixed rent expense	$	73,441

Supplemental balance sheet information related to leases was as follows:

	June 30,
	2022
Operating leases:
Operating lease assets	$	1,295,632
Current portion of operating lease liabilities	$	49,191
Noncurrent operating lease liabilities		1,328,637
Total operating lease liabilities	$	1,377,828
Weighted average remaining lease term:
Operating leases		13.73 years
Weighted average discount rate:
Operating leases		5.75%

Supplemental cash flow and other information related to leases was as follows:

	For the Six
	Months Ended
	June 30,
	2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	22,040

The future minimum lease payments due under operating leases as of June 30, 2022 was as follows:

Fiscal Year Ending	Minimum Lease
December 31,	Commitments
2022 (for the six months remaining)	$	63,264
2023		129,046
2024		132,917
2025		136,905
2026 and thereafter		1,554,000
Total	$	2,016,132
Less effects of discounting		638,304
Lease liability recognized	$	1,377,828