Finance and Operating Lease Obligations (Tables)

9 Months Ended

Sep. 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 September 30, 2022 (unaudited) and December 31, 2021:

	Balance Sheet Classification	September 30, 2022			December 31, 2021
Assets:
Operating leases	Right-of-use operating lease assets	$	640,386		$	821,274
Finance lease	Property and equipment, net		220,461			220,461
Total lease assets		$	860,847		$	1,041,735
Liabilities:
Current:
Operating leases	Right-of-use operating lease obligations	$	239,449		$	247,017
Finance lease	Current liabilities		220,461			220,461
Noncurrent:
Operating leases	Right-of-use operating lease obligations		400,937			574,257
Total lease liabilities		$	860,847		$	1,041,735
Weighted-average remaining term:
Operating leases			2.68 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 nine months ended September 30, 2022 and 2021 (unaudited):

	Three Months Ended September 30, 2022		Three Months Ended September 30, 2021		Nine Months Ended September 30, 2022		Nine Months Ended September 30, 2021
Finance lease expense:
Depreciation/amortization of lease assets	$	-	$	-	$	-	$	-
Interest on lease liabilities		-		-		-		-
Operating leases:
Short-term lease expense (2)		83,211		44,342		248,250		151,025
Total lease expense	$	83,211	$	44,342	$	248,250	$	151,025

(1)	As of September 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 nine months ended September 30, 2022 and 2021 (unaudited):

	Nine Months Ended September 30, 2022		Nine Months Ended September 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases obligations	$	218,846	$	168,923
Operating cash flows for finance lease	$	-	$	-
Financing cash flows for finance lease payments	$	-	$	29,524

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 September 30:
2023	$	307,082		$	224,252
2024		217,839			-
2025		223,795			-
2026		18,650			-
2027		-			-
Thereafter		-			-
Total		767,366			224,252
Less interest		(126,980	)		(3,791	)
Present value of minimum lease payments		640,386			220,461
Less current portion of lease obligations		(239,449	)		(220,461	)
Lease obligations, net of current portion	$	400,937		$	-