Annual report pursuant to Section 13 and 15(d)

Leases

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Leases
12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases

Note 6. Leases

 

Operating Leases

 

The Company’s principal executive office in New York City is under a month-to-month arrangement.

 

The Company has operating leases for corporate, business and technician offices. Leases with a probable term of 12 months or less, including month-to-month agreements, are not recorded on the condensed consolidated balance sheet, unless the arrangement includes an option to purchase the underlying asset, or an option to renew the arrangement, that the Company is reasonably certain to exercise (short-term leases). The Company recognizes lease expense for these leases on a straight-line bases over the lease term. The Company’s only remaining lease is month-to-month. As a practical expedient, the Company elected, for all office and facility leases, not to separate non-lease components (common-area maintenance costs) from lease components (fixed payments including rent) and instead to account for each separate lease component and its associated non-lease components as a single lease component. The Company uses its incremental borrowing rate for purposes of discounting lease payments.

 

As of December 31, 2022 and 2021, there were no assets recorded under operating leases. Operating lease right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to determine the commencement date present value of lease payment is the Company’s incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received.

 

For the year ended December 31, 2022 and 2021, the components of lease expense were as follows:

 

    For the years ended  
    December 31,  
    2022     2021  
Operating lease cost   $ 1,043     $ 14,196  
                 
Total lease cost   $ 1,043     $ 14,196  

 

As of December 31, 2022 and 2021, the Company has no additional operating leases, and no financing leases.