Annual report pursuant to Section 13 and 15(d)

Operating Lease Assets

v3.22.1
Operating Lease Assets
12 Months Ended
Dec. 31, 2021
Operating Lease Assets [Abstract]  
Operating Lease Assets 6.  Operating Lease Assets Adoption of Accounting Standards Codification (“ASC”) Topic 842, “Leases." The Company adopted Topic 842 on January 1, 2019, using the modified retrospective method and the optional transition method to record the adoption impact through a cumulative adjustment to equity. Results for reporting periods beginning after January 1, 2019, are presented under Topic 842, while prior periods are not adjusted and continue to be reported under the accounting standards in effect for those periods. The following are additional details related to leases recorded on our balance sheet as of December 31, 2020: LeasesClassification Balance at ‎December 31,‎2021Assets Current Operating lease assetsOperating lease assets $ —Noncurrent Operating lease assetsNoncurrent operating lease assets 1,187,537Total lease assets $ 1,187,537 Liabilities Current Operating lease liabilitiesOperating lease liabilities $ 229,240Noncurrent Operating lease liabilitiesNoncurrent operating lease liabilities $ 1,188,589Total lease liabilities $ 1,417,829 During the year ended December 31, 2021, we recorded amortization expense of $106,302 and during the year ended December 31, 2020, we recorded a credit to amortization expense of $17,214 related to the accretion of the lease liability, which is included in depreciation and amortization in the consolidated statement of operations. Rent expense was $258,368 and $317,774 for the years ended December 31, 2021 and 2020, respectively. We have entered into a new lease starting in February of 2021 for 8,898 square feet of office space located at 3133 W. Frye Road, Suite 215, Chandler, Arizona. Monthly rental payments, excluding common area maintenance charges, will be $25,953 to $28,733. The first twelve months of the lease includes a 50% abatement period. An operating lease asset and liability will be recorded when the lease commences in accordance with ASC 842.The maturity analysis below summarizes the remaining future undiscounted cash flows for our operating leases, a reconciliation to operating lease liabilities reported on the Condensed Consolidated Balance Sheet, our weighted-average remaining lease term and weighted average discount rate: Year ending December 31,Amount2022$ 318,0552023 324,2202024 330,8942025 337,5672026 344,241Thereafter 28,735 Total future lease payments 1,683,712   Less: imputed interest (265,883)Total$ 1,417,829 Weighted Average Remaining Lease Term (years)    Operating leases 6.00 Weighted Average Discount Rate    Operating leases 6.75%