Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Leases

Note 11. Leases

The Company’s leases do not provide an implicit rate that can be readily determined. Therefore, the Company uses discount rates based on the incremental borrowing rate of its current external debt of 8%.

The Company’s weighted-average remaining lease term relating to its operating leases is 1.24 years, with a weighted-average discount rate of the 8.00%.

The Company incurred lease expense for its operating leases of $14,639 and $13,176, which was included in general and administrative expenses in the statements of operation for the three months ended June 30, 2022 and 2021, respectively, and $24,352 and $13,176 for the six months ended June 30, 2022 and 2021, respectively. During the three months ended June 30, 2022 and 2021, the Company made cash lease payments of $14,639 and $17,483, and for the six months ended June 30, 2022 and 2021, the Company made cash lease payments in the amount of $24,352 and $17,483, respectively. At June 30, 2022 and December 31, 2021, the operating lease right-of-use asset was $106,014 and $49,432, respectively, the current portion of operating lease liability was $83,208 and $39,148, respectively, and the noncurrent portion of the operating lease liability was $22,806 and $10,283, respectively.

The following table presents information about the future maturity of the lease liability under the Company’s operating leases as of June 30, 2022.

Maturity of Lease Liability	Amount
2022 (remainder of the year)	$	48,479
2023		63,243
Total undiscounted lease payments		111,722
Less: Imputed interest		(5,708	)
Present value of lease liabilities	$	106,014
Weighted Average Remaining lease term (in years)		1.24