On January 3, 2017, the Company executed a non-cancellable operating lease for its principal office with the lease commencing February 1, 2017 for a five (5) year term. The Company paid a security deposit of $29,297. The lease required the Company to pay its proportionate share of direct costs estimated to be 22.54% of the total property, a fixed monthly direct cost of $6,201 for each month during the term of the lease, and monthly rental pursuant to the lease terms. This lease expired during February 2022.

 

In December 2019,

the Company entered a lease for office space located

at 8669 Research Drive,  Irvine, CA, 92618 to replace the Company’s then

current corporate headquarters. , a security deposit and the amount due for property taxes, insurance and association fees.

 

In addition, the Company entered into two leases for additional space in Irvine, CA. The leases commenced March 1, 2022 and June 1, 2022. Base rent is initially $16,250 and $48,379 with escalations contained in the lease through February 28, 2027 and May 31, 2027.

Supplemental balance sheet information related to leases is as follows as of March 31, 2023:

 

 

As the leases do not provide an implicit rate, the Company used an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments, which is reflective of the specific term of the leases and economic environment of each geographic region.   

 

Anticipated future lease costs are as follows:

 

 

The Company recorded rent expense of $327,875 and $213,654 for the three months ended March 2023 and 2022, respectively.