The Company has operating leases for approximately 12,250 square feet of space located in Miramar, Florida. The leases have a two-year term which commenced on March 1, 2022 and will terminate on February 29, 2024. Upon the commencement of the leases, the Company used its incremental borrowing rate of 6.0% to determine the amounts to recognize for a ROU asset and a lease liability. There are no obligations under finance leases.

The components of the lease expense for the three months and six months ended June 30, 2022 were as follows:


	For the Three Months Ended June 30, 2022		For the Six Months Ended June 30, 2022
Operating lease cost	$	42,413	$	56,550

Supplemental cash flow information related to lease for the six months ended June 30, 2022 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	$	69,643
Right-of-use assets obtained in exchange for lease obligations:
Operating lease	$	50,545

As of June 30, 2022, the supplemental balance sheet information related to leases was as follows:


	As of June 30, 2022
Operating lease right-of-use assets	$	268,298
Other current liabilities	$	170,687
Operating lease liabilities, net of current portion		98,447
Total operating lease liabilities	$	269,134

As of June 30, 2022, the remaining lease payments were as follows:


2022 (remaining 6 months)	$	83,572
2023		171,322
2024		28,693
Total future minimum lease payments	$	283,587

For the three months ended June 30, 2021 and 2022, rent expense recognized by the Company was $31,552 and $49,966 respectively, of which $14,623 and $25,149, respectively, is included in research and development in the accompanying condensed statements of operations. Certain comparative figures have been reclassified to conform to the current year presentation under Topic 842 for rent expense.

For the six months ended June 30, 2021 and 2022, rent expense recognized by the Company was $68,466 and $77,139, respectively, of which $34,790 and $32,834, respectively, is included in research and development in the accompanying condensed statements of operations. Certain comparative figures have been reclassified to conform to the current year presentation under Topic 842 for rent expense.

The Company operates under the provisions of agreements with a third-party global contract development and manufacturer of biologics for the manufacture of the Company’s proprietary molecules for use in clinical trials. At December 31, 2021, future payment obligations under such agreements were $2.5 million. At June 30, 2022, future payment obligations under such agreements were $4.1 million.

Management has no knowledge of any pending or unasserted claims against the Company.

In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a pandemic, which continues to spread throughout the United States and the world. The spread of COVID-19 has caused significant volatility in the U.S. and international markets. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the U.S. and international economies and, as such, the Company is unable to determine if it will have a material impact to its operations. The Company has encountered some delays in the commencement of clinical trials as a result of clinical sites experiencing COVID-related delays due to staffing shortages. In addition, the Company has encountered some delays in the completion of IND-enabling studies required by the Federal Drug Administration ("FDA") to support Investigational New Drug Applications ("IND") due to government-mandated measures taken as a result of COVID outbreaks.