Leases

12 Months Ended

Dec. 31, 2023

Leases

Leases

Note 11. Leases

On October 31, 2022, the Company signed a 120-day lease for 600 square feet of space in Hammonton, New Jersey to install and test its medical device equipment. The agreement required $2,500 upon signing the agreement and monthly payments of $2,500. As of December 31, 2022, the Company had not made any payments on the lease agreement and had accrued $7,500 related to the lease expense. The Company did not renew the lease agreement but used the facility on a month-to-month basis until a new location was found. During the year ended December 31, 2023, the Company paid $10,000 in lease expense related to this lease.

In May 2023, the Company entered into 36-month operating lease, which provides for approximately 1,800 square feet of office space, that commenced on June 1, 2023 and ends on May 31, 2026. The lease required a $2,850 security deposit and monthly lease payments are $2,850 the first year of the lease, $2,964 the second year and $3,082 the third year. The Company or landlord may terminate the lease at the expiration date by giving to the other party written notice at least ninety (90) days prior to the expiration date. The lease may be renewed for a term of one (1) year.

Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. On the commencement date of the lease, the Company recorded $92,425 related to the ROU asset and lease liability.

The components of lease expense and supplemental cash flow information related to the lease for the period are as follows:

	Year Ended December 31, 2023
Lease Cost
Operating lease cost (included in general and administrative in the Company’s statement of operations)	$	20,757
Other Information
Cash paid for amounts included in the measurement of lease liabilities for the year ended December 31, 2023	$	19,950
Weighted average remaining lease term – operating leases (in years)	2.42 years
Average discount rate – operating lease		10	%

The supplemental balance sheet information related to leases for the period is as follows:

	At December 31, 2023		At December 31, 2022
Operating leases
Remaining right-of-use assets	$	76,520	$	-
Short-term operating lease liabilities	$	28,838	$	-
Long-term operating lease liabilities	$	48,489	$	-
Total operating lease liabilities	$	77,327	$	-

Maturities of the Company’s undiscounted lease liabilities are as follows:

Year Ending	Operating Leases
2024	$	34,998
2025		36,394
2026		15,410
Total lease payments		86,802
Less: Imputed interest/present value discount		(9,475	)
Present value of lease liabilities	$	77,327