Finance and Operating Lease Obligations (Tables)

6 Months Ended

Jun. 30, 2022

Finance And Operating Lease Obligations

Schedule of Lease-related Assets and Liabilities

The following table presents our lease-related assets and liabilities at June 30, 2022 (unaudited) and December 31, 2021:

	Balance Sheet Classification	June 30, 2022			December 31, 2021
Assets:
Operating leases	Right-of-use operating lease assets	$	703,403		$	821,274
Finance lease	Property and equipment, net		220,461			220,461
Total lease assets		$	923,864		$	1,041,735
Liabilities:
Current:
Operating leases	Right-of-use operating lease obligations	$	247,017		$	247,017
Finance lease	Current liabilities		220,461			220,461
Noncurrent:
Operating leases	Right-of-use operating lease obligations		456,386			574,257
Total lease liabilities		$	923,864		$	1,041,735
Weighted-average remaining term:
Operating leases			2.93 years			3.57 years
Finance lease (1)			0 years			0 years
Weighted-average discount rate:
Operating leases			13.0	%		13.0	%
Finance leases			4.9	%		4.9	%

Schedule of Lease Expense

The following table presents certain information related to lease expense for finance and operating leases for the three and six months ended June 30, 2022 and 2021 (unaudited):

	Three Months Ended June 30, 2022		Three Months Ended June 30, 2021		Six Months Ended June 30, 2022		Six Months Ended June 30, 2021
Finance lease expense:
Depreciation/amortization of leased assets	$	-	$	-	$	-	$	-
Interest on lease liabilities		-		-		-		-
Operating leases:
Short-term lease expense (2)		97,681		34,033		165,039		106,583
Total lease expense	$	97,681	$	34,033	$	165,039	$	106,583

(1)	As of June 30, 2022 and December 31, 2021, the Company was in default under its finance lease obligation, therefore, the aggregate future minimum lease payments and accrued interest under this finance lease in the amount of $0.2 million are deemed to be immediately due.
(2)	Expenses are included in general and administrative expenses in the unaudited condensed consolidated statements of operations.

Schedule of Lease Supplemental Cash Flow Information

The following table presents supplemental cash flow information for the six months ended June 30, 2022 and 2021 (unaudited):

	Six Months Ended June 30, 2022		Six Months Ended June 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases obligations	$	162,539	$	102,152
Operating cash flows for finance lease	$	-	$	-
Financing cash flows for finance lease payments	$	-	$	-

Schedule of Future Minimum Rentals Under Right-of-use Operating and Finance Leases

Aggregate future minimum lease payments under right-of-use operating and finance leases are as follows (unaudited):

	Right-of-Use Operating Leases			Finance Lease
Twelve months ending June 30:
2023	$	339,024		$	224,252
2024		216,239			-
2025		222,712			-
2026		74,598			-
Thereafter		-			-
Total		852,573			224,252
Less interest		(149,170	)		(3,791	)
Present value of minimum lease payments		703,403			220,461
Less current portion of lease obligations		(247,017	)		(220,461	)
Lease obligations, net of current portion	$	456,386		$	-