NOTE 6 – LEASES

The Company has entered into operating leases primarily for real estate. These leases have terms which range from 1 to 8 years, and often include one or more options to renew. These renewal terms can extend the lease term from 1 year to month-to-month and are included in the lease term when it is reasonably certain that the Company will exercise the option. These operating leases are included in “Right of use assets” on the Company’s March 31, 2023, Consolidated Balance Sheets and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are included in “Current portion of lease liabilities” and “Lease liabilities net of current portion” on the Company’s March 31, 2023, Consolidated Balance Sheets. As of March 31, 2023, total right-of-use assets and operating lease liabilities were approximately $235,700 and $265,700, respectively. All operating lease expense is recognized on a straight-line basis over the lease term. In the three months ended March 31, 2023, the Company recognized approximately $20,900 in operating lease costs for right-of-use assets.

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. The Company has certain contracts for real estate which may contain lease and non-lease components which it has elected to treat as a single lease component.

Information related to the Company’s right-of-use assets and related lease liabilities were as follows (unaudited):

SCHEDULE OF RIGHT-OF-USE-ASSETS AND RELATED LEASE LIABILITIES 

Maturities of lease liabilities as of March 31, 2023 were as follows:

SCHEDULE OF MATURITIES OF LEASE LIABILITIES