Commitments and Contingencies
|9 Months Ended|
Sep. 30, 2023
|Commitments and Contingencies Disclosure [Abstract]|
|Commitments and Contingencies||
10. Commitments and Contingencies
The company had a pending legal proceeding related to a Telephone Consumer Protection Act (“TCPA”) violation. This is a putative class action complaint alleging that the defendant initiated telephone solicitations through text messages in violation of the Florida Telephone Solicitation Act, Fla. Stat. §501.059 (“FTSA”). The defense of the matter was tendered to the Company by its client, Sonic Industries, Inc. During the nine months ended September 30, 2023, the Company has settled five TCPA claims for a total settlement loss of $25,500 and this amount is included within settlement losses on the accompanying unaudited consolidated statements of operations and comprehensive loss.
As described in Note 6, the Company has a lease agreement 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 12 months of the lease included a 50% abatement period. As of September 30, 2023, we have an operating lease asset balance for this lease of $825,041 and an operating lease liability balance for this lease of $1,001,579 recorded in accordance with ASC 842.
The entire disclosure for commitments and contingencies.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef