Leases

9 Months Ended

Sep. 30, 2024

Leases

Leases

Note 11. Leases

The Company conducts its operations in leased facilities under a non-cancelable operating lease, which was originally set to expire in April 2024. The lease has been extended for 13 months for a new term that began on May 1, 2024 and will expire on May 31, 2025.

Due to the adoption of the new lease standard under the optional transition method which allows the entity to apply the new lease standard at the adoption date, the Company has capitalized the present value of the minimum lease payments commencing May 1, 2024, using an estimated incremental borrowing rate of 6.5%. The minimum lease payments do not include common area annual expenses which are considered to be non-lease components.

As of May 1, 2024 the operating lease right-of-use asset and operating lease liability amounted to $83,046 with no cumulative-effect adjustment to the opening balance of accumulated deficit.

There are no other material operating leases. The Company has elected not to recognize right-of-use assets and lease liabilities arising from short-term leases.

Total lease expense under operating leases for the three and nine months ended September 30, 2024 was $19,800 and $50,800, respectively. Total lease expense under operating leases for the three and nine months ended September 30, 2023 was $13,300 and $40,000, respectively.

Undiscounted future minimum lease payments as of September 30, 2024, by year and in aggregate are as follows:

	Operating Leases
2024	$	21,400
2025		35,700
		57,100
Less interest		(5,300	)
Total	$	51,800