Leases

12 Months Ended

Dec. 31, 2021

Note 16 - Leases

The Company leases its offices and research facilities under operating leases which are subject to various rent provisions and escalation clauses.

Effective June 1, 2021, the Company commenced a sixty-three-month lease agreement for its corporate headquarters located in approximately 3,472 square feet of office space at 777 Yamato Road, Suite 502, Boca Raton, FL 33431.

During the year ended December 31, 2020, the Company entered into a month-to-month lease for office space in Delray Beach, FL, a one-year residential lease in Delray Beach, FL and a two-year lease extension (amendment) to is Hayward, CA office. During the year ended December 31, 2020, the Company’s lease for its research laboratory in France expired and was not renewed.

The Company determined that the modification to the Hayward, CA lease did not grant an additional right of use and concluded that the modification was not a separate new lease, but rather that it should reassess and remeasure the entire modified lease on the effective date of the modification. The Company accounted for the lease amendment prospectively.

The Company’s leases expire at various dates through 2026. The escalation clauses are indeterminable and considered not material and have been excluded from minimum future annual rental payments.

Lease expense amounted to approximately $261,000 and $205,000 for the years ended December 31, 2021 and 2020, respectively.

The weighted-average remaining lease term and weighted-average discount rate under operating leases at December 31, 2021 were:

	December 31, 2021			December 31, 2020
Lease term and discount rate
Weighted-average remaining lease term	4.1 years			1.42 years
Weighted-average discount rate		6.87	%		6.00	%

Maturities of operating lease liabilities at December 31, 2021 were as follows:

2022	$	81,254
2023		83,691
2024		86,202
2025		88,788
2026		60,593
Total lease payments		400,528
Less imputed interest		(11,401	)
Present value of lease liabilities	$	389,127