Right-of-Use Assets and Lease Liabilities

12 Months Ended

Dec. 31, 2021

Right-of-use Assets And Lease Liabilities

Right-of-Use Assets and Lease Liabilities

Note 5 – Right-of-Use Assets and Lease Liabilities

On November 17, 2021, the Company amended its operating lease for its manufacturing facility in Irvine, California, to extend the term an additional 60 months from its September 30, 2022 expiration date to a new expiration date of September 30, 2027. The initial lease rate at the date of the amendment was $30,206 per month with escalating payments. In connection with the lease, the Company is obligated to pay $7,254 monthly for operating expenses for building repairs and maintenance. The Company has no other operating or financing leases with terms greater than 12 months.

The Company determined the lease liabilities using the Company’s estimated incremental borrowing rate of 3.95% to estimate the present value of the remaining monthly lease payments.

Our operating lease cost is as follows:

	For the Year Ended December 31, 2021
Operating lease cost	$	345,857

Supplemental cash flow information related to our operating lease is as follows:

	For the Year Ended December 31, 2021
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$	354,561

Remaining lease term and discount rate for our operating lease is as follows:

	December 31, 2021
Remaining lease term		5.7 years
Discount rate		3.95	%

Maturity of our lease liabilities by fiscal year for our operating lease is as follows:

Year ended December 31, 2022	$	365,190
Year ended December 31, 2023		376,146
Year ended December 31, 2024		387,435
Year ended December 31, 2025		399,054
Year ended December 31, 2026		411,024
Year ended December 31, 2027		315,153
Total	$	2,254,002
Less: Imputed interest		(248,027	)
Present value of our lease liability	$	2,005,975

ENVVENO MEDICAL CORPORATION

f/k/a HANCOCK JAFFE LABORATORIES, INC.

NOTES TO FINANCIAL STATEMENTS