Leases

3 Months Ended

Mar. 31, 2022

Leases

Leases

Note 6: Leases 

The Company has one operating lease for an office space. As March 31, 2022, the lease has a remaining term of approximately 20 months. The operating lease does not include an option to extend beyond the life of the current term. There are no short-term leases, and the lease agreement does not require material variable lease payments, residual value guarantees or restrictive covenants.

The tables below present the operating lease assets and liabilities recognized on the condensed consolidated balance sheets as of March 31,2022 and December 31, 2021:

Right-of Use Assets	March 31, 2022		December 31, 2021
Operating Leases	$	568,537	$	650,460

Lease Liabilities, Current	March 31, 2022		December 31, 2021
Operating Leases	$	356,122	$	349,871
Lease Liabilities, Non-Current
Operating Leases		250,361		342,562
Total Lease Liabilities	$	606,483	$	692,433

The amortizable lives of operating and financing leased assets are limited by the expected lease term.

The Company’s lease generally does not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular currency environment. The Company used incremental borrowing rates as of January 1, 2019 for leases that commenced prior to that date and the prevailing incremental borrowing rate thereafter.

The Company’s weighted average remaining lease term and weighted average discount rate for operating and financing leases as of March 31, 2022, and December 31, 2021, are:

March 31, 2022	Operating
Weighted Average Remaining Lease Term		1.67 Years
Weighted Average Discount Rate		3.95	%

December 31, 2021	Operating
Weighted Average Remaining Lease Term		1.92 Years
Weighted Average Discount Rate		3.95	%

The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under non-cancelable leases with terms of more than one year to the total lease liabilities recognized on the condensed consolidated balance sheets as of March 31, 2022:

Year Ending December 31,	Operating
Remainder of 2022	$	278,444
2023		349,365
Undiscounted Future Minimum Lease Payments	$	627,809
Less: Difference between undiscounted lease payments and discounted lease liabilities		21,326
Total Lease Liabilities	$	606,483
Short-Term Lease Liabilities	$	356,122
Long-Term Lease Liabilities	$	250,361

Operating lease expense was approximately $88,000 and $136,000 for the three months ended March 31, 2022 and 2021, respectively. Operating lease costs are included within selling, general and administrative expenses on the condensed consolidated statements of operations.

              Cash paid for amounts included in the measurement of operating lease liabilities were approximately $93,000 and $137,000 for the years ended March 31, 2022 and 2021, respectively.