Lease

6 Months Ended

Jun. 30, 2023

Lease

Lease

Note 11. Lease

Beginning on June 1, 2022, the Company leases its headquarters facility under an operating lease agreement that expires on May 31, 2029. Rent due is $118,487 annually during the first year of the lease term, and increases by 2.0% annually thereafter.

Upon entering the lease agreement, the Company recognized a right-of-use asset of $691,009 and a lease liability of $691,009.

Supplemental balance sheet information related to the lease on June 30, 2023 and December 31, 2022 is as follows:

		June 30,			December 31,
Description	Classification	2023			2022
Right of Use Asset – Lease, net	Other assets (non-current)	$	604,366		$	645,095
Operating Lease liability – Short-term	Accrued liabilities		80,762			76,826
Operating Lease liability – Long-term	Other long-term liabilities		531,374			572,560
Total operating lease liability		$	612,136		$	649,386
Discount rate – operating lease			7.00	%		7.00	%