Note 10. Leases

Operating lease

We have a noncancelable operating lease entered in November 2016 for our office facility that expires in July 2021 and has renewal options to May 2024. The monthly “Base Rent” is $10,392 and the Base Rent is increased by 2.5% each year. During the year ended December 31, 2021, the Company exercised its option and extended the lease to May 31, 2024. As of March 31, 2023 and December 31, 2022, the remaining right of use asset was $21,604 and $53,697, respectively, and the remaining lease liability was $22,566 and $56,103, respectively.

In May 2021, we entered into a new lease agreement for our office and warehouse space that expires in May 2024. The Company shall have the option to terminate the lease after 12 months and 24 months from the commencement date. The monthly “Base Rent” is $11,855 and the Base Rent may be increased by 2.5% each year. As of March 31, 2023 and December 31, 2022, the remaining right of use asset was $162,651 and $196,240, respectively, and the remaining lease liability was $171,264 and $206,365, respectively.

We recognized total lease expense of approximately $86,387 and $84,999 for the three months ended March 31, 2023 and 2022, respectively, primarily related to operating lease costs paid to lessors from operating cash flows. As of March 31, 2023 and December 31, 2022, the Company recorded a security deposit of $10,000 included in Other assets on the balance sheet.

Future minimum lease payments under operating leases that have initial noncancelable lease terms in excess of one year at March 31, 2023 were as follows:

 Summary of Future Minimum Lease Payments Under Operating Leases

The following summarizes other supplemental information about the Company’s operating lease as of March 31, 2023:

 Summary of Other Supplemental Information