Quarterly report pursuant to Section 13 or 15(d)

OPERATING LEASE LIABILITY

v3.22.1
OPERATING LEASE LIABILITY
3 Months Ended
Mar. 31, 2022
Disclosure Text Block [Abstract]  
Lessee, Operating Leases [Text Block]

NOTE 8 OPERATING LEASE LIABILITY

 

The Company leases office space in eleven different locations with monthly payments ranging from $744 to $10,279 which expire at various dates through April 2024.

 

The Company's leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. The asset and liability was valued using an weighted average interest rate of 4.77%.

 

The Company's weighted average remaining lease term for operating leases as of March 31, 2022 is as follows:

 

   

March 31, 2022

   

December 31, 2021

 

Weighted average remaining lease term

    1.78       2.46  

 

The following table reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total lease liabilities recognized on the unaudited condensed consolidated balance sheet as of March 31, 2022:

 

Remainder 2022

  $ 292,739  

2023

    277,881  

2024

    60,735  

Total undiscounted future minimum lease payments

    631,355  

Less: Difference between undiscounted lease payments and discounted lease liabilities

    (27,133

)

Total operating lease liabilities

    604,222  

Less current portion

    (348,048

)

Long-term operating lease liabilities

  $ 256,174  

 

Total rent expense under operating leases for the three months ended March 31, 2022 and 2021 was $119,329 and $161,814, respectively.