| SCHEDULE OF COMPONENTS OF LEASE EXPENSE |
The
components of lease expense, which are included in selling, general and administrative expense and depreciation and amortization for
the six months ended June 30, 2024 and 2023, are as follows:
SCHEDULE OF COMPONENTS OF LEASE EXPENSE
| |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
| |
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
| |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
| Amortization of right-of-use asset - finance lease |
|
$ |
96,243 |
|
|
$ |
— |
|
|
$ |
192,486 |
|
|
$ |
— |
|
| Interest on lease liabilities - finance lease |
|
|
22,235 |
|
|
|
— |
|
|
|
45,785 |
|
|
|
— |
|
| Operating lease cost |
|
|
29,916 |
|
|
|
— |
|
|
|
59,831 |
|
|
|
— |
|
| Total lease cost |
|
$ |
148,394 |
|
|
$ |
— |
|
|
$ |
298,102 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating cash flows from finance leases |
|
$ |
(88,665 |
) |
|
$ |
— |
|
|
$ |
(179,105 |
) |
|
$ |
— |
|
| Operating cash flows from operating leases |
|
|
(516 |
) |
|
|
— |
|
|
|
(1,032 |
) |
|
|
— |
|
|
| SCHEDULE OF BALANCE SHEET INFORMATION RELATING TO LEASES |
Supplemental
balance sheet information relating to leases was as follows as of June 30, 2024, and December 31, 2023:
SCHEDULE OF BALANCE SHEET INFORMATION RELATING TO LEASES
| Operating leases: |
|
June 30, 2024 |
|
|
December 31, 2023 |
|
| Operating lease right-of-use asset |
|
$ |
324,942 |
|
|
$ |
370,312 |
|
| Operating lease liability, current |
|
$ |
98,593 |
|
|
$ |
94,708 |
|
| Operating lease liability, long-term |
|
$ |
232,714 |
|
|
$ |
283,001 |
|
| Finance leases: |
|
June 30, 2024 |
|
|
December 31, 2023 |
|
| Finance lease right-of-use asset, gross |
|
$ |
1,294,168 |
|
|
$ |
1,294,168 |
|
| Accumulated amortization |
|
|
(320,810 |
) |
|
|
(128,324 |
) |
| Finance lease right-of-use asset, net |
|
$ |
973,358 |
|
|
$ |
1,165,844 |
|
| Finance lease liability, current portion |
|
$ |
380,259 |
|
|
$ |
365,463 |
|
| Finance lease liability, long-term |
|
|
641,566 |
|
|
|
835,467 |
|
| Total finance lease liabilities |
|
$ |
1,021,825 |
|
|
$ |
1,200,930 |
|
| Weighted-average remaining lease term: |
|
June 30, 2024 |
|
|
December 31, 2023 |
|
| Operating leases (in years) |
|
|
3.08 |
|
|
|
3.58 |
|
| Finance leases (in years) |
|
|
2.82 |
|
|
|
3.25 |
|
| Weighted-average discount rate: |
|
June 30, 2024 |
|
|
December 31, 2023 |
|
| Operating leases |
|
|
8.07 |
% |
|
|
8.07 |
% |
| Finance leases |
|
|
8.02 |
% |
|
|
8.01 |
% |
|
| SCHEDULE OF FUTURE MINIMUM LEASE PAYMENT UNDER NON-CANCELLABLE |
Future
minimum lease payments under non-cancellable lease as of June 30, 2024, are as follows:
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENT UNDER NON-CANCELLABLE
| |
|
Operating Leases |
|
|
Finance Leases |
|
| Remaining for 2024 |
|
$ |
60,863 |
|
|
$ |
224,252 |
|
| 2025 |
|
|
121,726 |
|
|
|
448,505 |
|
| 2026 |
|
|
121,726 |
|
|
|
270,395 |
|
| 2027 and thereafter |
|
|
71,007 |
|
|
|
202,970 |
|
| Total undiscounted cash flows |
|
|
375,322 |
|
|
|
1,146,122 |
|
| Less discounting |
|
|
(44,015 |
) |
|
|
(124,297 |
) |
| Present value of lease liabilities |
|
$ |
331,307 |
|
|
$ |
1,021,825 |
|
|