LEASES

9 Months Ended

Sep. 30, 2022

Leases

LEASES

NOTE 7 — LEASES

The Company has entered into two leases for its office space, which were classified as operating leases. It has also entered into two leases for office equipment, one of which was terminated in June 2022, and a lease for a vehicle, and these leases were classified as finance leases. Right-of-use assets of these finance leases in the amount of $21,741 and $57,167 are included in property and equipment as of September 30, 2022 and December 31, 2021, respectively.

The components of lease costs are as follows:

	For the Nine Months Ended
	September 30,
	2022		2021
Finance lease costs
Amortization of right-of-use assets	$	26,825	$	40,100
Interest on lease liabilities		370		961
Total finance lease costs		27,195		41,061
Operating lease costs		244,688		294,946
Total lease costs	$	271,883	$	336,007

The following table presents supplemental information related to the Company’s leases:

	For the Nine Months Ended
	September 30,
	2022			2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	370		$	961
Operating cash flows from operating leases		243,108			306,082
Financing cash flows from finance leases		29,051			42,941
Weighted average remaining lease term (years)
Finance leases		1.1			1.7
Operating leases		9.4			10.4
Weighted-average discount rate: (per annum)
Finance leases		1.32	%		1.32	%
Operating leases		1.32	%		1.32	%

As of September 30, 2022, the future maturity of lease liabilities is as follows:

Year ending December 31,	Finance leases			Operating leases
Remaining of 2022	$	5,243		$	71,778
2023		17,649			287,112
2024		259			287,112
2025		-			287,112
2026		-			287,112
Thereafter		-			1,469,265
Total lease payments		23,151			2,689,491
Less: imputed interest		(76	)		(165,820	)
Total lease liabilities		23,075			2,523,671
Less: current portion		19,502			264,387
Non-current lease liabilities	$	3,573		$	2,259,284

Pursuant to the operating lease agreements, the Company made security deposits to the lessors. The security deposits amounted to $221,460 and $278,237 as of September 30, 2022 and December 31, 2021, respectively.