Leases

12 Months Ended

Dec. 31, 2023

NOTE 9— LEASES

The Company is a party to two office leases which expire on December 31, 2028. As of December 31, 2023, the weighted average remaining term is five years. The Company elected to not recognize ROU assets and lease liabilities arising from short-term leases (leases with initial terms of twelve months or less, which are deemed immaterial) on its balance sheets.

When measuring lease liabilities for leases that were classified as operating leases, the Company discounted lease payments using its estimated incremental borrowing rate at the later of lease inception or January 1, 2020 (the date of adoption). The weighted average incremental borrowing rate applied was 8%.

The following table presents net lease cost and other supplemental lease information:


	December 31,
	2023			2022
Lease cost:
Operating lease cost	$	27,675		$	201,400
Short term lease cost		—			—

Net lease cost		27,675			2,022

Cash paid for operating lease liabilities	$	(109,379	)	$	(204,930	)

As of December 31, 2023, the estimated future minimum lease payments, excluding

non-lease

components, are as follows:


		Operating
Fiscal Year	Leases
2024	$	204,930
2025		204,930
2026		204,930
2027		204,930
2028		204,930

Total future minimum annual lease payments		1,024,650
Less: Imputed interest		(176,799	)

Present value of lease liabilities	$	847,851