Quarterly report pursuant to Section 13 or 15(d)

Finance and Operating Lease Obligations (Tables)

v3.23.2
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     $ -