Leases

9 Months Ended

Sep. 30, 2022

Leases

Leases

8. Leases

On April 25, 2022, the Company entered into a real property lease for 5 apartments located at 921 Fern Street, West Palm Beach, Florida. The lease commenced on May 2, 2022 for a twelve month period, terminating on May 15, 2023. The Company applied the practical expedient whereby operating leases with a duration of twelve months or less are expensed as incurred

 Right of use assets are included in the condensed consolidated balance sheet are as follows:

	September 30, 2022		December 31, 2021
Non-current assets
Right-of-use assets – finance leases, net of depreciation, included in Property and equipment	$	40,876	$	49,268
Right-of-use assets - operating leases, net of amortization	$	1,459,729	$	1,653,816

Lease costs consists of the following: 

	Nine months ended  September 30,
	2022		2021
Finance lease cost:
Amortization of right-of-use assets	$	8,392	$	—
Interest expense on finance lease liabilities		1,880		—
Finance lease cost		10,272		—
Operating lease cost		194,086		90,386
Lease cost	$	204,358	$	90,386

Other lease information: 

	Nine months ended September 30,
	2022			2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	(5,531	)	$	—
Operating cash flows from operating leases		(248,724	)		(87,934	)
	$	(254,255	)	$	(87,934	)
Weighted average remaining lease term – finance leases		4 years and one month			—
Weighted average remaining lease term – operating leases		4 years and 4 months			—
Discount rate – finance leases		6.61	%		—
Discount rate – operating leases		4.64	%		—

Maturity of Leases

Finance lease liability

The amount of future minimum lease payments under finance leases is as follows: 

	Amount
Remainder of 2022	$	2,457
2023		9,829
2024		9,829
2025		9,829
2026		7,902
Total undiscounted minimum future lease payments		39,846
Imputed interest		(5,095	)
Total finance lease liability	$	34,751
Disclosed as:
Current portion	$	7,762
Non-Current portion		26,989
Lease liability	$	34,751

Operating lease liability

The amount of future minimum lease payments under operating leases are as follows:

	Amount
Remainder of 2022	$	83,349
2023		348,677
2024		366,110
2025		384,416
2026		437,407
Total undiscounted minimum future lease payments		1,619,959
Imputed interest		(64,455	)
Total operating lease liability	$	1,555,504
Disclosed as:
Current portion	$	275,372
Non-Current portion		1,280,132
Lease liability	$	1,555,504