Quarterly report pursuant to Section 13 or 15(d)

Operating Lease Assets

Operating Lease Assets
9 Months Ended
Sep. 30, 2023
Operating Lease Assets  
Operating Lease Assets

6. 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 included a 50% abatement period and a deposit of $110,000 was required. The lessor contributed $110,000 towards the purchase of office furniture as part of the lease agreement. As of September 30, 2023, we have an operating lease asset balance of $825,041 and an operating lease liability balance of $1,001,579 recorded in accordance with ASC 842, Leases (ASC “842”).


The following are additional details related to leases recorded on our balance sheet as of September 30, 2023:


Leases   Classification   Balance at
September 30,
Operating lease assets   Operating lease assets   $  
Operating lease assets   Noncurrent operating lease assets   $ 825,041  
Total lease assets       $ 825,041  
Operating lease liabilities   Operating lease liabilities   $ 269,815  
Operating lease liabilities   Noncurrent operating lease liabilities   $ 731,764  
Total lease liabilities       $ 1,001,579  



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,      
2023   $ 81,194  
2024     330,894  
2025     337,568  
2026     344,241  
2027     28,734  
Total future lease payments     1,122,631  
Less: imputed interest     (121,052 )
Total   $ 1,001,579  


Weighted Average Remaining Lease Term (years)      
Operating leases     3.58  
Weighted Average Discount Rate        
Operating leases     6.75 %