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