Note 10 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

10. Commitments and Contingencies

During August 2017 the Company acquired and was assigned all right, title and interest in an office lease with Teachers Insurance and Annuity Association of America (“TIAA”) for approximately 1,502 square feet of office space at 5430 LBJ Freeway, Dallas, Texas. During September 2017 the Company amended the lease to expand its space by approximately 336 square feet for a total of 1,838 square feet and extended the expiration date to September 30, 2022. During February 2021, the Company amended its lease with TIAA to expand its space by approximately 847 square feet for a total of 2,685 square feet and extended the expiration date to September 30, 2025. On April 14, 2021, the Company amended its lease with TIAA extending the lease expiration until September 30, 2028.

Operating lease agreements are required to be recognized on the balance sheet as right of use assets and corresponding lease liabilities under ASC 842, Leases. When measuring right of use assets and the corresponding liabilities, the Company discounted lease payments using an estimated incremental borrowing rate of 10%. As a result of the February and April 2021 amendments, the Company recognized additional right of use assets and lease liabilities totaling $389,026.

The Company records rent expense associated with this lease on a straight-line basis in conjunction with the terms of the underlying lease. During the years ended December 31, 2021 and 2020, the Company’s office rental expenses totaled approximately $77,400 and $59,600, respectively.

The table below shows the future lease payment obligations:

Year Ending December 31,	Amount
2022	$	88,786
2023		87,934
2024		89,948
2025		91,122
2026		93,136
Thereafter		167,645
	$	618,571

The Company is not currently a defendant in any material litigation or any threatened litigation that could have a material effect on the Company’s financial statements.