Leases

9 Months Ended

Sep. 30, 2021

Leases

Leases

Note 14: Leases

The Company entered into a Lease Agreement for a term of five years commencing on September 14, 2020, pursuant to which the Company agreed to lease two Sharp copiers. The base of $1,415 per month.

On June 13, 2018, the Company entered into a Lease Agreement for a term of six years commencing on July 1, 2018, pursuant to which the Company agreed to lease approximately 3,000 rentable square feet. The base rent increases by 3% each year, and ranges from $2,100 per month for the first year to $2,785 per month for the sixth year.

On May 1, 2019, the Company entered into a Lease Agreement for a term of three years commencing on May 1, 2019 pursuant to which the Company agreed to lease approximately 3,000 rentable square feet. The base rent is $1,500 per month for the term of the lease.

The expected lease term includes both contractual lease periods and, when applicable, cancelable option periods when it is reasonably certain that the Company would exercise such options. The Company’s leases have remaining lease terms between 3 months and 4 years. As of September 30, 2021, the weighted-average remaining term is 2.97 years.

The Company has determined that the incremental borrowing rate is 10% as of September 30, 2021, based upon the most recently completed financing transaction in December 2019.

Period December 31,
(in thousands)
2021	$	14
2022		48
2023		47
2024		34
2025		17
Less imputed interest		(16	)
Total	$	144

As of September 30, 2021, the balance of the right of use assets was $144,000 and the corresponding lease liability balance was $144,000. Total rent expense was $39,000 for the nine months ended September 30, 2021, and $38,000 for the nine months end September 30, 2020.