Leases

12 Months Ended

Dec. 31, 2023

Leases

Leases

13. Leases

The Company leases an office, a plant and certain equipment under non-cancelable operating and finance lease agreements. The leases have remaining lease terms ranging from one year to ten years.

Supplemental balance sheet information related to leases is as follows:     

Balance Sheet Location		December 31, 2023
Operating Leases
Right-of-use assets, net		$	551,702
Current liabilities	Lease liability, current maturities		146,753
Non-current liabilities	Lease liability, net of current maturities		404,949
Total operating lease liabilities		$	551,702
Finance Leases
Right-of-use assets		$	1,435,435
Current liabilities	Lease liability, current maturities		709,335
Non-current liabilities	Lease liability, net of current maturities		144,342
Total finance lease liabilities		$	853,677
Weighted Average Remaining Lease Term
Operating leases			1.75 years
Finance leases			1 year
Weighted Average Discount Rate
Operating leases			3%
Finance leases			3%

As the leases do not provide an implicit rate, the Company used an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments, which is reflective of the specific term of the leases and economic environment of each geographic region. 

Anticipated future lease costs, which are based in part on certain assumptions to approximate minimum annual rental commitments under non-cancelable leases, are as follows:

Year Ending December 31,		Operating			Financing			Total
2024	$	324,000		$	801,869		$	1,125,869
2025		243,000			66,822			309,822
Total lease payments		567,000			868,691			1,435,691
Less: Imputed interest		(15,298	)		(15,014	)		(30,312	)
Present value of lease liabilities	$	551,702		$	853,677		$	1,405,379

Total lease expense amounted to $943,441 and $770,272 for the years ending December 31, 2023 and 2022.