Quarterly report pursuant to Section 13 or 15(d)

Operating Lease Assets

v3.22.1
Operating Lease Assets
3 Months Ended
Mar. 31, 2022
Operating Lease Assets [Abstract]  
Operating Lease Assets 5. Operating Lease Assets

The Company entered into a lease agreement on February 1, 2021 for 8,898 square feet, for its office facilities in Chandler, AZ through January 2027. Monthly rental payments, excluding common area maintenance charges, are $25,953 to $28,733. The first twelve months of the lease includes a 50% abatement period and a deposit for $110,000 was required. The lessor contributed $110,000 towards the purchase of office furniture as part of the lease agreement. As of March 31, 2022, we have an operating lease asset balance of $1,132,317 and an operating lease liability balance of $1,365,431 recorded in accordance with ASC 842.

 

The following are additional details related to leases recorded on our balance sheet as of March 31, 2022:

 

Leases

Classification

Balance at

March 31,

2022

Assets

Current

Operating lease assets

Operating lease assets

$

Noncurrent

Operating lease assets

Noncurrent operating lease assets

$

1,132,317

Total lease assets

$

1,132,317

Liabilities

Current

Operating lease liabilities

Operating lease liabilities

$

237,761

Noncurrent

Operating lease liabilities

Noncurrent operating lease liabilities

$

1,127,670

Total lease liabilities

$

1,365,431

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,

Amount

2022

$

241,949

2023

324,221

2024

330,894

2025

337,568

2026

344,241

Thereafter

28,733

Total future lease payments

1,607,606

   Less: imputed interest

(242,175)

Total

$

1,365,431

Weighted Average Remaining Lease Term (years)

   Operating leases

5.6

Weighted Average Discount Rate

   Operating leases

6.75%