Quarterly report pursuant to Section 13 or 15(d)


3 Months Ended
Mar. 31, 2024



The Company leases its corporate headquarters office space and certain office equipment under arrangements classified as operating leases.


The Company entered into its lease agreement to rent office space for a twelve-month period beginning July 1, 2022, with a monthly base rent of $9,744. The lease did not contain renewal options and was considered a short-term lease at inception. In April 2023, the Company executed an amendment to extend the term of the lease from July 1, 2023, through September 30, 2026. The amended lease provides for a monthly base rent of $9,310 through September 2024, with fixed escalating monthly base rent for each year thereafter, and no rent due for the months of July through September 2023.

The Company determined that the amendment results in a lease modification that is not accounted for as a separate contract. Further, due to the extension of the lease term beyond the initial twelve months, the office lease can no longer be considered a short-term lease. The Company recorded a right-of-use asset and lease liability as of April 17, 2023 (the effective date of the amendment) based on the modified terms and conditions of the amended lease.


The Company entered into a lease agreement for copier equipment in June 2023, requiring monthly lease payments of $329 through May 2026.


Total operating lease expense was $50,265, which included $21,340 of variable lease expense during the three-month period ended March 31, 2024.


Operating lease obligations recorded on the unaudited consolidated balance sheet at March 31, 2024 are as follows:


Operating lease liabilities, current portion


$ 100,525


Operating lease liabilities – less current portion





Total Operating Lease Liabilities


$ 277,259



Future lease payments included in the measurement of operating lease liabilities on the audited consolidated balance sheet at March 31, 2024 are as follows:




$ 91,611












Total future minimum lease payments





Less imputed interest



(35,059 )

Total Operating Lease Liabilities


$ 277,259



The weighted average remaining lease term is 30 months, and the weighted average discount rate is 10%.