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LEASES
6 Months Ended
Jun. 30, 2023
LEASES  
LEASES

NOTE 10    LEASES

On January 18, 2023, the Company entered into a new lease agreement for office space in Webster, Texas. The initial lease term is twelve months and thirteen days. Monthly rental payments under the new lease are $5,047, which is comprised of $4,245 of base rent plus $802 of common area maintenance fees. The Company determined that the value of the lease liability and the related right-of-use asset at inception was $51,154, using an estimated incremental borrowing rate of 5%.

The Company also leases office space in San Diego, California pursuant to an operating lease which expires May 31, 2024. As of June 30, 2023, the Company does not have any financing leases.

During the three and six months ended June 30, 2023, operating lease expense was $65,873 and $131,746, respectively. During the three and six months ended June 30, 2022, operating lease expense was $57,849 and $131,930, respectively.

Maturities of lease liabilities as of June 30, 2023 were as follows:

For the period from July 1, 2023 through December 31, 2023

    

$

144,494

2024

103,432

Total future minimum lease payments

$

247,926

Less: amount representing imputed interest

 

(5,848)

Present value of lease liabilities

$

242,078

Less: current portion

(242,078)

Lease liabilities, non current portion

$

Supplemental cash flow information related to the leases was as follows:

    

For the Six Months Ended

 

 

June 30, 

2023

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows used in operating activities

$

130,678

Right-of-use assets obtained in exchange for lease obligations

Operating leases

$

51,154

Weighted Average Remaining Lease Term (Years)

Operating leases

0.88

years

Weighted Average Discount Rate

Operating leases

5.0

%