Quarterly report pursuant to Section 13 or 15(d)

Operating Lease

Operating Lease
9 Months Ended
Sep. 30, 2022
Operating Lease  
Operating Lease


  4. Operating Lease


The Company leases certain corporate office space under an operating lease agreement. We determine if an arrangement is a lease at inception. Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Generally, the implicit rate of interest in lease arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The lease expires May 31, 2025 and requires base rent ranging from $3,563 to $3,893 per month.


The components of lease expense and supplemental cash flow information related to leases are as follows: 

    September 30,  
Lease costs:        
Operating lease (included in general and administrative in the Company’s consolidated statement of operations)   $  
Other information:        
Cash paid for amounts included in the measurement of lease liabilities   $ 26,000  
Weighted average remaining lease term – operating leases (in years)     2.6  
Average discount rate – operating leases     4%  
The supplemental balance sheet information related to leases for the period is as follows:        
Long-term right-of-use assets   $ 116,000  
Short-term operating lease liabilities     41,000  
Long-term operating lease liabilities     77,000  
Total operating lease liabilities   $ 118,000  


Future minimum lease payments under operating leases as of September 30, 2022 are as follows:

Year ending December 31,   Amount  
2022 (remainder of year)   $ 11,000  
2023     45,000  
2024     46,000  
2025     19,000  
Total minimum lease payments     121,000  
Less: interest     (3,000 )
Present value of lease liabilities   $ 118,000