Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

Leases

We have entered into operating and finance leases primarily for real estate and equipment rental. These leases have terms which range from three years to six years, and often include one or more options to renew or in the case of equipment rental, to purchase the equipment. These operating and finance leases are listed as separate line items on our consolidated balance sheets and represent our right to use the underlying asset for the lease term. Our obligation to make lease payments is also listed as separate line items on our consolidated balance sheets. As of September 30, 2023 and December 31, 2022, total operating and financed right-of-use assets were $882,919 and $94,266, and $310,162 and $168,750, respectively. As of September 30, 2023 and 2022, we recorded $77,790 and $73,313, respectively, in amortization expense related to finance leases. As of September 30, 2023 and 2022, we recorded $274,707 and $282,580 , respectively, in rent expense related to operating leases.

In May 2023, we entered into an agreement to lease 4,128 square feet of office space in San Jose, CA commencing on September 1, 2023. The lease has a term of sixty-five months with an abatement period of five months and will cost approximately $208,000 during its first year. Thereafter, the lease payments increase by 3%.

Because the rate implicit in each lease is not readily determinable, we use our incremental borrowing rate to determine the present value of the lease payments.

Information related to our operating lease liabilities are as follows:

	For the Nine Months Ended September 30,
Cash paid for operating lease liabilities	$	85,960
Weighted-average remaining lease term	3.88 years
Weighted-average discount rate	10.5		%

Minimum future lease payments ended September 30, 2023
2023 (remainder of year)	85,909
2024	220,665
2025	209,681
2026	206,020
2027	204,027
Thereafter	221,030
	1,147,332
Less imputed interest	(259,922)
Total lease liabilities	$	887,410

Information related to our financed lease liabilities are as follows:

	For the Nine Months Ended September 30,
Cash paid for finance lease liabilities	$	22,683
Weighted-average remaining lease term	1.47 years
Weighted-average discount rate	6.25		%

Minimum future lease payments ended September 30, 2023
2023 (remainder of the year)	15,738
2024	56,180
2025	18,490
	90,408
Less imputed interest	(2,946)
Total lease liabilities	$	87,462

Leases

Leases

We have entered into operating and finance leases primarily for real estate and equipment rental. These leases have terms which range from three years to six years, and often include one or more options to renew or in the case of equipment rental, to purchase the equipment. These operating and finance leases are listed as separate line items on our consolidated balance sheets and represent our right to use the underlying asset for the lease term. Our obligation to make lease payments is also listed as separate line items on our consolidated balance sheets. As of September 30, 2023 and December 31, 2022, total operating and financed right-of-use assets were $882,919 and $94,266, and $310,162 and $168,750, respectively. As of September 30, 2023 and 2022, we recorded $77,790 and $73,313, respectively, in amortization expense related to finance leases. As of September 30, 2023 and 2022, we recorded $274,707 and $282,580 , respectively, in rent expense related to operating leases.

In May 2023, we entered into an agreement to lease 4,128 square feet of office space in San Jose, CA commencing on September 1, 2023. The lease has a term of sixty-five months with an abatement period of five months and will cost approximately $208,000 during its first year. Thereafter, the lease payments increase by 3%.

Because the rate implicit in each lease is not readily determinable, we use our incremental borrowing rate to determine the present value of the lease payments.

Information related to our operating lease liabilities are as follows:

	For the Nine Months Ended September 30,
Cash paid for operating lease liabilities	$	85,960
Weighted-average remaining lease term	3.88 years
Weighted-average discount rate	10.5		%

Minimum future lease payments ended September 30, 2023
2023 (remainder of year)	85,909
2024	220,665
2025	209,681
2026	206,020
2027	204,027
Thereafter	221,030
	1,147,332
Less imputed interest	(259,922)
Total lease liabilities	$	887,410

Information related to our financed lease liabilities are as follows:

	For the Nine Months Ended September 30,
Cash paid for finance lease liabilities	$	22,683
Weighted-average remaining lease term	1.47 years
Weighted-average discount rate	6.25		%

Minimum future lease payments ended September 30, 2023
2023 (remainder of the year)	15,738
2024	56,180
2025	18,490
	90,408
Less imputed interest	(2,946)
Total lease liabilities	$	87,462