LEASES

12 Months Ended

Dec. 31, 2022

Leases

LEASES

NOTE 6 – LEASES

The Company has entered into operating leases primarily for real estate. These leases have terms which range from 1 to 8 years, and often include one or more options to renew. These renewal terms can extend the lease term from 1 year to month-to-month and are included in the lease term when it is reasonably certain that the Company will exercise the option. These operating leases are included in “Right of use assets” on the Company’s December 31, 2022, Consolidated Balance Sheets and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are included in “Current portion of lease liabilities” and “Lease liabilities net of current portion” on the Company’s December 31, 2022, Consolidated Balance Sheets. As of December 31, 2022, total right-of-use assets were approximately $249,700, and operating lease liabilities were approximately $280,500 respectively. All operating lease expense is recognized on a straight-line basis over the lease term. In the year ended December 31, 2022, the Company recognized approximately $83,600 in operating lease costs for right-of-use assets.

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. The Company has certain contracts for real estate which may contain lease and non-lease components which it has elected to treat as a single lease component.

Information related to the Company’s right-of-use assets and related lease liabilities were as follows:

	Years Ended December 31,
	2022			2021
Cash paid for operating lease liabilities	$	124,900		$	247,600
Right-of-use assets obtained in exchange for new operating lease obligations		-			-
Weighted-average remaining lease term		44 months			56 months
Weighted-average discount rate		10	%		10	%

Maturities of lease liabilities as of September 30, 2022 were as follows:

2023	$	88,300
2024		90,900
2025		93,600
2026		64,500
2027		-
Thereafter		-
		337,300
Less imputed interest		(56,800	)
Total lease liabilities		280,500
Current operating lease liabilities		63,100
Non-current operating lease liabilities		217,400
Total lease liabilities	$	280,500