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12 Months Ended

Dec. 31, 2021

Leases [Abstract]

LEASE

5.     LEASE

The Company entered into an operating lease for an office space which became effective in June 2020. The lease term is 10 years from the effective date and allows for two optional extensions of five years each. The two optional extensions are not recognized as part of the right-of-use asset or lease liability since it is not reasonably certain that the Company will extend this lease. As of December 31, 2021, the remaining lease term was 8.4 years and the discount rate was 6%. The lease for our previous office space was accounted for as a short-term lease.

Operating lease cost included in selling, general and administrative expenses was $623,987 and $489,104 for the years ended December 31, 2021 and 2020, respectively. Cash paid for operating lease was $571,968 and $323,648 for the years ended December 31, 2021 and 2020, respectively. Short-term lease cost included in selling, general and administrative expense was $0 and $94,906 for the years ended December 31, 2021 and 2020, respectively.

The following is the lease maturity analysis of our operating lease as of December 31, 2021:

Twelve months ending December 31,

2022	$	571,968
2023		571,968
2024		571,968
2025		612,006
2026		640,604
Thereafter		2,188,731
Total lease payments		5,157,245
Less: Imputed interest		(1,143,647	)
Present value of future lease payments		4,013,598
Less: current portion of lease liability		(340,412	)
Long-term portion of lease liability	$	3,673,186