LEASES

12 Months Ended

Dec. 31, 2023

Leases

LEASES

7.  LEASES

The Company has entered into operating leases primarily for office space. These leases have initial terms which range from two years to six years, and often include one or more options to renew or in the case of equipment rental, to purchase the equipment. During the year ended December 31, 2023, $11,152 of right of use assets and leases liabilities were added related to new operating leases.

The Company leases approximately 2,100 square feet of office space in Boca Raton, Florida at the rate of $4,000 per month pursuant to a three-year lease which was renewed for six months and expired in March 2022. The Florida office space is the location of the Company’s corporate headquarters and administrative staff. In January 2022, the Company signed a new lease agreement to extend the term until March 2024. The total legally binding minimum lease payments for this lease are approximately $94,898.

In August and September 2022, the Company signed new lease agreements to extend its use of approximately 25,300 square feet of office space in Manila. The lease agreements expire in December 2027. The total legally binding minimum lease payments for these leases are approximately $1,044,644.

On March 10, 2023, the Company entered into an assignment and first amendment to its lease dated November 3, 2017 for approximately 1,900 square feet of office space in Peachtree Corners, GA. Under the terms of the amended agreement, the Company agreed to extend the lease term until May 31, 2024. The Company has the option to renew the lease term for an additional 12 months. The renewal option is not included in the future minimum lease payments used in determining the ROU liability as management is not reasonably certain to execute the option. The total legally binding minimum lease payments for this lease is approximately $12,267.

On September 27, 2023, the Company signed a new lease agreement for approximately 150 square feet of office space in Calabasas, CA at a rate of approximately $1,550 per month. The term of the lease is 12 months from the commencement date, November 15, 2023. The Company has elected not to account for the lease under the standard due to its short term.

The future minimum payment obligations at December 31, 2023 for operating leases are as follows:

2024	$	287,577
2025		276,622
2026		224,702
2027		235,939
Thereafter		–
Total	$	1,024,840

These operating leases are listed as separate line items on the Company's 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 also listed as separate line items on the Company's Consolidated Balance Sheets.

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.

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

	Year Ended December 31, 2023
Cash paid for operating lease liabilities	$	377,652
Weighted-average remaining lease term (in years)		2.9
Weighted-average discount rate		10%

Total rent expense related to lease obligations, reflected in general and administrative costs line items on the consolidated income statements, for the years ended December 31, 2023 and 2022, were $396,560 and $398,754, respectively.

The following table presents the amortization of the Company’s lease liabilities under ASC 842 at December 31, 2023:

2024	$	205,575
2025	$	215,177
2026	$	184,776
2027	$	214,490
Thereafter	$	820,018