Quarterly report pursuant to Section 13 or 15(d)

Leases

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Leases
6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
LEASES

NOTE 4 – LEASES

 

Laboratory Lease – South San Francisco, California

 

In August 2022, the Company, as a lessee, entered into an amended sublease agreement to sublease laboratory and office space in South San Francisco, California. The lease commenced on August 15, 2022. The term of this sublease is for a period of thirty-nine and one-fourth (39.25) months commencing on the effective date, until May 15, 2024. The lease had a gross monthly rent of $15,700 per month to December 31, 2022. Starting January 1, 2023, the monthly rent increased by 3% annually, to $16,171 per month in 2023. Starting January 1, 2024, the monthly rent increased to $16,656. The Company had no remaining lease payments as of June 30, 2024.

 

This lease was accounted for as an operating lease under ASC 842, Leases, which resulted in the recognition of a right of use asset (“ROU asset”) and liability of approximately $332,000 at inception. The ROU asset is recorded as a component of non-current assets and the liability a component of current and non-current liabilities on the Company’s consolidated balance sheets. The Company discounted the future lease payments of this lease using the prevailing collateralized lending rate which would be extended to the Company based on its credit profile relative to the period of inception, and the duration of the lease from inception. The interest rate used in calculating the fair value listed above was 7.8%. 

 

As of June 30, 2024 and December 31, 2023, the Company recognized total ROU assets and lease liabilities as follows:

 

    As of
June 30,
2024
    As of
December 31,
2023
 
Non-current leases - right of use assets   $
    $ 79,271  
Current liabilities - operating lease liabilities   $
    $ 81,680  
Non-current liabilities - operating lease liabilities   $
    $
 
                 
Operating lease expense   $ 122,103     $ 243,230  
Cash paid for amounts included in the measurement of operating lease liabilities   $
    $