General form of registration statement for all companies including face-amount certificate companies

PREPAID EXPENSES

v3.23.1
PREPAID EXPENSES
12 Months Ended
Dec. 31, 2022
PREPAID EXPENSES  
PREPAID EXPENSES

NOTE 4. PREPAID EXPENSES

 

Prepaid expenses at December 31, 2022 and December 31, 2021 consisted of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Insurance

 

$ 150,344

 

 

$ 4,286

 

Deposit

 

 

15,736

 

 

 

-

 

Rent

 

 

-

 

 

 

8,267

 

Other

 

 

34,825

 

 

 

-

 

Prepaid expenses

 

$ 200,905

 

 

$ 12,553

 

 

On February 26, 2021, the Company entered into a lease agreement for its office facility for a 12-month term beginning March 1, 2021. In addition to monthly base rent of $6,000, the agreement required the issuance of 5,333 shares of its common stock valued at $49,600, which was amortized over the lease term.

 

On May 25, 2022, the Company purchased Directors & Officers insurance prepaying annual premiums of $349,455 through a nine-month financing arrangement (see Note 9). The Company recorded $221,357 of insurance expense related to the prepaid Directors & Officers insurance during the year ended December 31, 2022.

During October 2022, the Company entered into a 12-month agreement for investor relations services in exchange for the issuance of 27,500 common shares and 60,000 warrants at $2.56 per share with a fair value on the date of issuance of $39,453, which will be recognized over the period of service.