LEASE

12 Months Ended

Dec. 31, 2022

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, 2022, the remaining lease term was 7.4 years and the discount rate was 6%.

Operating lease cost included in selling, general and administrative expenses was $736,038 and $623,987 for the years ended December 31, 2022 and 2021, respectively. Cash paid for operating lease was $571,968 and $571,968 for the years ended December 31, 2022 and 2021, respectively.

The following is the lease maturity analysis of our operating lease as of December 31, 2022:

Twelve months ending December 31,

2023	$	571,968
2024		571,968
2025		612,006
2026		640,604
2027		640,604
Thereafter		1,548,127
Total lease payments		4,585,277
Less: Imputed interest		(912,092	)
Present value of future lease payments		3,673,185
Less: current portion of lease liability		(361,408	)
Long-term portion of lease liability	$	3,311,777