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Long Term Lease Obligation Disclosure
9 Months Ended
Sep. 30, 2022
Notes  
Long Term Lease Obligation Disclosure

(8)Long Term Lease Obligation 

 

Effective October 1, 2021, the Company entered into a lease agreement with a landlord to lease 8,566 square feet of commercial office building space located in Addison, Texas (see Note 6). The lease agreement is for a total term of 63 months, beginning October 1, 2021 and ending December 31, 2026. As of September 30, 2022, the Company is building out this space, pending obtaining any necessary governmental approvals, and intends to utilize it as its corporate office as well as its aerosol filling laboratory and isolate manufacturing facility. The Company is accounting for the lease agreement as an operating lease under ASU 2016-02, Leases (Topic 842). Accordingly, the Company has capitalized the present value of the future lease obligations and is amortizing the related right-of-use asset on a straight-line basis each month over the term of the lease.

 

Total operating lease minimum payments, together with their present values as of September 30, 2022, are summarized as follows:

 

Year ending December 31, 2022

 

$

23,557

Year ending December 31, 2023

 

 

98,509

Year ending December 31, 2024

 

 

102,792

Year ending December 31, 2025

 

 

107,075

Year ending December 31, 2026

 

 

111,358

Total future minimum lease payments

 

 

443,291

Less amounts representing interest

 

 

(45,881)

Present value of lease liability

 

 

397,410

Current portion of operating lease liability

 

 

(79,350)

 

 

 

 

Long-term portion of operating lease liability

 

$

318,060

 

As of September 30, 2022, the operating lease right-of-use asset and operating lease liabilities were $361,395 and $397,410, respectively. The long-term portion of the operating lease liabilities, $318,060, is included in long-term obligations.  As of September 30, 2022, the weighted-average discount rate for this operating lease was 5%.

 

The future operating lease payments are guaranteed by a senior employee of the Company.