Quarterly report pursuant to Section 13 or 15(d)

Leases

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Leases
9 Months Ended
Sep. 30, 2024
Leases  
Leases

Note 5 – Leases

 

We lease our office space under an operating lease agreement. This lease does not have significant rent escalation, concessions, leasehold improvement incentives, or other build-out clauses. Further, the lease does not contain contingent rent provisions. Our office space lease includes both lease (e.g., fixed payments including rent, taxes, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs), which are accounted for as a single lease component as we have elected the practical expedient to group lease and non-lease components for all leases. We also lease office equipment under a financing lease. Our leases do not provide an implicit rate and, as such, we have used our incremental borrowing rate of 8% in determining the present value of the lease payments based on the information available at the lease commencement date.

 

Lease costs included in our condensed consolidated statements of operations totaled approximately $23,000 and $24,000 for the three months ending September 30, 2024 and 2023, respectively, and approximately $68,000 and $73,000 for the nine months ended September 30, 2024, and 2023, respectively. The weighted average remaining lease terms and discount rate for our leases were as follows at September 30, 2024:

 

Remaining lease term (years) for our facility lease     1.0  
Remaining lease term (years) for our equipment lease     1.4  
Weighted average discount rate for our facility and equipment leases     8.0 %

 

Annual lease liabilities for the operating lease were as follows at September 30, 2024:

 

         
2024   $ 23,347  
2025     70,040  
Total lease payments     93,387  
Less: Interest     (4,610 )
Present value of lease liabilities     88,777  
Less: current maturities     (88,777 )
Non-current lease liability   $ -  

 

Annual lease liabilities for the financing lease were as follows at September 30, 2024:

 

         
2024   $ 1,616  
2025     6,820  
2026     488  
Total lease payments     8,924  
Less: Interest     (857 )
Present value of lease liabilities     8,067  
Less: current maturities     (5,899 )
Non-current lease liability   $ 2,168