Leases

9 Months Ended

Sep. 30, 2021

Leases

Note 10. Leases

(10) Leases

We adopted ASC 842 “Leases” using the modified retrospective approach, electing the practical expedient that allows us not to restate our comparative periods prior to the adoption of the standard on January 1, 2019. As such, the disclosures required under ASC 842 are not presented for periods before the date of adoption.

The following was included in our balance sheet as of September 30, 2021:

Operating leases	Sept. 30, 2021
Assets
ROU operating lease assets	$	278,878
Liabilities
Current portion of operating lease	$	88,986
Operating lease, net of current portion	$	199,302
Total operating lease liabilities	$	288,288
Finance leases
Assets
Property and equipment, gross	$	157,184
Accumulated depreciation		(72,978	)
Property and equipment, net	$	84,206
Liabilities
Current portion of financing lease	$	33,280
Finance lease, net of current portion		26,047
Total operating lease liabilities	$	59,327

The weighted average remaining lease term and weighted average discount rate at September 30, 2021 were as follows:

Weighted average remaining lease term (years)	Sept. 30, 2021
Operating leases		3.00
Finance leases		1.75
Weighted average discount rate
Operating leases		5.96	%
Finance leases		4.89	%

Finance Lease

The Company entered into a 60-month lease agreement to finance certain laboratory equipment in July 2018 with a purchase option of $1. As such, the Company has accounted for this transaction as a finance lease.

The following table reconciles future minimum finance lease payments to the discounted lease liability as of September 30, 2021:

2021		9,445
2022		37,778
2023		18,889
Total lease payments		66,112
Less imputed interest		(2,695	)
Less sales tax		(4,090	)
Total lease obligations		59,327
Less current obligations		(33,280	)
Long-term lease obligations	$	26,047

Operating Leases

On December 4, 2015, the Company entered into a new operating lease agreement to rent office space in Bohemia, NY. This five-year agreement commenced February 1, 2016 with an annual rent of $50,000 and 3.75% increases in each successive lease year. On January 13, 2021, a lease rider was annexed to the original lease whereby the lease term will be extended on a month-by-month basis, commencing on February 1, 2021. 

On January 15, 2016, the Company entered into a five-year agreement to lease 2 copiers with and annual payment of $2,985. This lease was terminated on November 16, 2020 and the Company entered into a new five-year agreement to lease 2 copiers with an annual payment of $3,976.

On September 12, 2019, the Company entered into a new operating lease agreement to rent office space in Ronkonkoma, NY. This five- year agreement commenced on September 12, 2019 with an annual rent of $90,000 and 3% increase in each successive lease year beginning in 2021. The Company has an option to buy the property during the first two years of the lease for $1,200,000 and then at fair market value for the remainder of the lease term.

On November 27, 2019, the Company entered a 39-month agreement to lease an automobile with a monthly payment of $420.

The following table reconciles future minimum operating lease payments to the discounted lease liability as of September 30, 2021:

2021		25,428
2022		104,497
2023		102,741
2024		79,948
2025		3,645
Total lease payments		316,259
Less imputed interest		(27,971	)
Total lease obligations		288,288
Less current obligations		(88,986	)
Long-term lease obligations	$	199,302