Quarterly report pursuant to Section 13 or 15(d)


6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Leases Leases
    Our leases principally consist of operating leases related to our corporate office, field offices, and our research, manufacturing, and storage facilities.
    At inception, we determine if an arrangement contains a lease and whether that lease meets the classification criteria of a finance or operating lease. Some of our lease agreements contain lease components (e.g. minimum rent payments) and non-lease components (e.g. maintenance, labor charges, etc.). We account for each component separately based on the estimated standalone price of each component.
    Operating leases are included in Right-of-use assets, Lease obligations, current and Lease obligations, long term on the condensed consolidated balance sheets. These assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the lease term and using an incremental borrowing rate consistent with the lease terms or implicit rates, when readily determinable. For those leases where it is reasonably certain at the commencement date that we will exercise the option to extend the lease, then the lease term will include the lease extension term. Short-term operating leases, which have an initial term of 12 months or less, are not recorded on the balance sheet.
    Lease expense for operating leases, which principally consist of fixed payments for base rent, is recognized on a straight-line basis over the lease term. Lease expense for the three and six months ended June 30, 2023 and 2022 was $216,841 and $406,556 and $210,155 and $407,074, respectively.
    Supplemental information related to leases for the six months ended June 30, 2023 was as follows:
Six Months Ended June 30,
2023 2022
Cash paid for amounts included in the measurement of operating lease liabilities $ 371,264  $ 365,509 
Right-of-use assets obtained in exchange for operating lease liabilities $ —  $ — 
Weighted-average remaining lease term - operating leases 3.70 years 3.70 years
Weighted-average discount rate - operating leases % %
Supplemental information related to operating leases as of June 30, 2023 and December 31, 2022 was as follows:
June 30, 2023 December 31, 2022
Operating leases
Right-of-use assets $ 920,690  $ 1,245,549 
Operating lease liability, current $ 513,811  $ 687,589 
Operating lease liability, long-term 459,372  623,452 
Total operating lease liability $ 973,183  $ 1,311,041 
    Future minimum lease commitments under non-cancellable operating leases as of June 30, 2023 were as follows:
 Operating Leases
Year 1 $ 550,785 
Year 2 132,569 
Year 3 121,565 
Year 4 76,818 
Year 5 53,422 
Thereafter 144,100 
Total lease payments 1,079,259 
Less: imputed interest 106,076 
Total $ 973,183 
The lease on our headquarters located in Waltham, Massachusetts which consists of approximately 43,000 square feet of manufacturing, storage and office space, expires on March 31, 2024. Currently, our monthly base rent is $44,254. On March 31, 2023, we entered into two lease agreements for two adjoining buildings, located in Billerica, Massachusetts, containing approximately 26,412 square feet of manufacturing, storage and offices space to serve as our headquarters and manufacturing facilities. The lease agreements provide for initial lease terms of five (5) years with two successive options to renew for additional terms of five (5) years. Both leases commence on January 1, 2024 and require payment of the base rent, real estate taxes, common maintenance expenses and aggregate deposits of $38,200. Our costs for initial improvements required to the leased premises is estimated to range between $1,000,000 and $1,250,000. The estimated straight-line monthly rent expense for the initial term of the lease is approximately $24,800 per month. In accordance with ASC 842-20-30-1, we will record the lease liability and right-of-use asset using the discount rate for the lease upon the lease commencement date.