LEASES

6 Months Ended

Jun. 30, 2022

LEASES

Lessee, Operating Leases [Text Block]

6. LEASES

The Company is obligated under a noncancelable operating lease for its office space in Campbell, California, expiring in May 2023 (the “Campbell Lease”). In addition, the Company is required to share in certain taxes and operating expenses of the Campbell Lease.

The Company recorded a non-cash transaction to recognize on January 1, 2022 lease liabilities totaling $76,141 and right-of-use-assets totaling $72,007. This lease liability represents the net present value of future lease payments for the Campbell Lease utilizing a discount rate of 2.45%, which corresponds to the Company’s incremental borrowing rate. As of June 30, 2022, the remaining lease term was 0.9 years. The Company recorded expenses related to the Campbell Lease of $12,958 and $25,915 for the three and six months ended June 30, 2022. The Company recorded no expenses related to the Campbell Lease during the three months ended June 30, 2021 and during the period from February 5, 2021 through June 30, 2021. During the three and six months ended June 30, 2022, the Company made cash payments of $13,514 and $27,028 for amounts included in the measurement of lease liabilities.

The following table reconciles the undiscounted lease liabilities to the total lease liabilities recognized on the unaudited condensed consolidated balance sheet as of June 30, 2022:

Undiscounted lease liabilities for years ending December 31,
2022 (remaining)	$	27,306
2023		23,224
Total undiscounted lease liabilities		50,530
Less effects of discounting		(617)
Total lease liabilities	$	49,913