Leases

12 Months Ended

Dec. 31, 2023

Leases

Leases

5. Leases

We lease office space and office copiers related primarily to the Company’s administrative activities. The Company accounts for leases under ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases.

In January 2020, the Company signed a new four-year office lease which covers approximately 2,771 square feet of office and storage space. This lease was effective March 1, 2020 and extended through February 29, 2024. The monthly rent is $15,361. We did not renew this lease. In February 2020, the Company renewed its additional storage space lease, which requires us to make monthly payments of $1,475. The Company recorded a right of use asset and lease liability obligation of $715,310 upon inception of these leases. The Company also reclassified a previously existing right-of-use asset of $66,271 from other assets to right-of-use asset.

As of December 31, 2023, the balance of right-of-use assets was $31,610, and the balance of total lease liabilities was $33,606.

Future minimum lease payments under non-cancelable operating leases under ASC 842 as of December 31, 2023 are as follows:

	Operating Lease Payments
Jan 2024 – Dec 2024		33,673
Total future minimum lease payments		33,673
Less: present value adjustment		(67	)
Operating lease liabilities at December 31, 2023	$	33,606

The components of rent expense and supplemental cash flow information related to leases for the period are as follows:

	Year Ended December 31, 2023
Lease Cost
Operating lease cost (included in General and administrative expenses in the Company’s Consolidated Statements of Operations)	$	200,924
Other information
Cash paid for amounts included in the measurement of lease liabilities for the year ended December 31, 2023	$	178,092
Weighted average remaining lease term – operating leases (in years)		0.2
Average discount rate		3.5	%