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 nine months ended September 30, 2022 were as follows:


	For the Three Months Ended September 30, 2022		For the Nine Months Ended September 30, 2022
Operating lease cost	$	42,413	$	84,825

Supplemental cash flow information related to lease for the nine months ended September 30, 2022 was as follows:


	For the Nine Months Ended September 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows	$	111,429
Right-of-use assets obtained in exchange for lease obligations:
Operating lease	$	89,110

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


	As of September 30, 2022
Operating lease right-of-use assets	$	229,733
Other current liabilities	$	174,520
Operating lease liabilities, net of current portion		56,676
Total operating lease liabilities	$	231,196

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


2022 (remaining 3 months)	$	41,786
2023		171,322
2024		28,693
Total future minimum lease payments	$	241,801

For the three months ended September 30, 2021 and 2022, rent expense recognized by the Company was $36,300 and $43,700 respectively, of which $19,200 and $22,200, 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 nine months ended September 30, 2021 and 2022, rent expense recognized by the Company was $104,100 and $130,300, respectively, of which $52,600 and $57,800, 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 September 30, 2022, future payment obligations under such agreements were $2.0 million.

In the ordinary course of business, the Company enters into agreements that may include indemnification provisions. Pursuant to such agreements, the Company may indemnify, hold harmless and defend the indemnified parties for losses suffered or incurred by the indemnified party. Some of the provisions will limit losses to those arising from third-party actions. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amount of future payments the Company could be required to make under these provisions is not determinable. To date, the Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. The Company has also entered into indemnification agreements with its directors and officers that may require it to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers to the fullest extent permitted by law. The Company also has directors’ and officers’ insurance.

The length of time and full extent to which the COVID-19 pandemic directly or indirectly impacts the Company's business, results of operations and financial condition, including but not limited to the supply chain, manufacturing, clinical trials, research and development costs and employee-related costs, depends on future developments that are highly uncertain, subject to change and are difficult to predict. Additionally, the ongoing geopolitical tensions related to Chinese aggression toward Taiwan, the conflict in Ukraine, and the related sanctions and other penalties imposed, in addition to other financial pressures from inflation and higher interest rates, are creating substantial uncertainty in the global economy. 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 and supply chain issues. In addition, the Company has encountered some delays in the completion of IND-enabling studies required by the U.S. Federal Drug Administration to support Investigational New Drug Applications (“IND”) due to government-mandated measures taken as a result of COVID outbreaks. The Company expects to be impacted by inflation, especially for materials required for the buildout of the Company's new headquarters and employee-related costs. These headwinds may have an adverse impact on the Company's ability to conduct clinical trials as well as IND-enabling activities, causing delays in our clinical development timeline. The Company uses a number of strategies to effectively navigate these issues, but the extent and duration of such events and conditions, and resulting disruptions to the Company's operations, are highly unpredictable.