LEASES

9 Months Ended

Sep. 30, 2022

Leases

LEASES

NOTE 7 – LEASES

We adopted ASC 842 “Leases” using the modified retrospective approach, electing the practical expedient that allows us not to restate our comparative periods prior to the adoption of the standard on January 1, 2019. As such, the disclosures required under ASC 842 are not presented for periods before the date of adoption.

The following was included in our balance sheet as of September 30, 2022: 

Operating leases	September 30,  2022
Assets
ROU operating lease assets	$	2,654,676
Liabilities
Current portion of operating lease	$	1,779,238
Operating lease, net of current portion	$	1,145,908
Total operating lease liabilities	$	2,925,146

The weighted average remaining lease term and weighted average discount rate at September 30, 2022 were as follows: 

Weighted average remaining lease term (years)	September 30, 2022
Operating leases		7.53
Weighted average discount rate
Operating leases		6.00%

Operating Leases

On March 9, 2022, the Company entered into an operating lease agreement to rent office space in Houston, Texas. This ten-year agreement commenced March 9. 2022 with an annual rent of approximately $81,000 with the first twelve months rent free.

The following table reconciles future minimum operating lease payments to the discounted lease liability as of September 30, 2022: 

2022		122,777
2023		512,373
2024		497,411
2025		506,716
2026 and later		2,039,800
Total lease payments		3,679,077
Less imputed interest		(753,931	)
Total lease obligations		2,925,146
Less current obligations		(1,779,238	)
Long-term lease obligations	$	1,145,908