Finance and Operating Lease Obligations (Tables)

6 Months Ended

Jun. 30, 2023

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, 2023 (unaudited) and December 31, 2022:

	Balance Sheet Classification	June 30, 2023			December 31, 2022
Assets:
Operating leases	Right-of-use operating lease assets	$	440,310		$	574,256
Finance lease	Property and equipment, net		-			-
Total lease assets		$	440,310		$	574,256
Liabilities:
Current:
Operating leases	Right-of-use operating lease obligations	$	168,761		$	215,063
Finance lease	Finance lease obligation		220,461			220,461
Long-term	Right-of-use operating lease obligations		271,549			359,193
Total lease liabilities		$	660,771		$	794,717
Weighted-average remaining term:
Operating leases			2.33 years			2.59 years
Finance lease (1)			N/a			N/a
Weighted-average discount rate:
Operating leases			13.0	%		13.0	%
Finance lease			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, 2023 and 2022 (unaudited):

	Three Months Ended June 30, 2023		Three Months Ended June 30, 2022		Six Months Ended June 30, 2023		Six Months Ended June 30, 2022
Finance lease expense:
Depreciation/amortization of leased assets	$	-	$	-	$	-	$	-
Interest on lease liabilities		-		-		-		-
Operating leases:
Short-term lease expense (2)		82,347		97,681		174,915		165,039
Total lease expense	$	82,347	$	97,681	$	174,915	$	165,039

Schedule of Lease Supplemental Cash Flow Information

The following table presents supplemental cash flow information for the six months ended June 30, 2023 and 2022 (unaudited):

	Six Months Ended June 30, 2023		Six Months Ended June 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	175,460	$	162,539
Operating cash flows for finance lease	$	-	$	-
Financing cash flows for finance lease payments	$	-	$	-

(1)	As of June 30, 2023 and December 31, 2022, 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 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:

	Right-of-Use Operating Leases			Finance Lease
Twelve months ending June 30:
2024	$	216,239		$	224,252
2025		222,712			-
2026		74,598			-
2027		-			-
2028		-			-
Thereafter		-			-
Total		513,549			224,252
Less interest		(73,239	)		(3,791	)
Present value of minimum lease payments		440,310			220,461
Less current portion of lease obligations		(168,761	)		(220,461	)
Lease obligations, net of current portion	$	271,549		$	-