Leases

9 Months Ended

Sep. 30, 2024

Leases

Leases

9. Leases

On June 18, 2022, the Company leased 2,700 square feet of corporate office space in Knoxville, Tennessee through an operating lease agreement for a term of three years ending on June 30, 2025. The monthly base rent ranges from $4,053 to $4,278 over the term of the lease.

Total operating lease expense for the three months ended September 30, 2024 was $12,842, of which $8,561 was included within research and development and $4,281 was included within general and administrative expenses on the condensed consolidated statements of operations. Total operating lease expense for the three months ended September 30, 2023 was $12,560 of which $8,373 was included within research and development and $4,187 was included within general and administrative expenses on the condensed consolidated statements of operations.

Total operating lease expense for the nine months ended September 30, 2024 was $38,686, of which $25,791 was included within research and development and $12,895 was included within general and administrative expenses on the condensed consolidated statements of operations. Total operating lease expense for the nine months ended September 30, 2023 was $38,739 of which $25,826 was included within research and development and $12,913 was included within general and administrative expenses on the condensed consolidated statements of operations.

A summary of the Company’s right-of-use assets and liabilities is as follows:

	For the Nine Months Ended
	September 30,
	2024			2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases	$	35,662		$	32,938
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	-		$	-
Weighted Average Remaining Lease Term
Operating leases		9 months			1 year 9 months
Weighted Average Discount Rate
Operating leases		5.0	%		5.0	%

Future minimum payments under the Company’s non-cancellable lease obligations as of September 30, 2024 were as follows:

Future Minimum Payments

Years	Amount
2024	$	12,835
2025		25,669
Total lease payments		38,504
Less: amount representing imputed interest		(790	)
Present value of lease liability		37,714
Less: current portion		(37,714	)
Lease liability, non-current portion	$	-