Quarterly report pursuant to Section 13 or 15(d)

Commitment and Contingencies

Commitment and Contingencies
9 Months Ended
Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Office Lease

The Company leases office space for its corporate headquarters, located at 1250 El Camino Real, San Diego, California 92130. The lease is effective from September 1, 2021 through October 31, 2022 and contains a renewal option for a two-year extension after the current expiration date. The Company does not expect that the renewal option will be exercised, and has therefore excluded the option from the calculation of the right of use asset and lease liability. The lease provides for two months of rent
abatement and the initial monthly rent is $8,067 per month with annual increases of 3% commencing on November 1, 2022. The lease includes non-lease components (i.e., property management costs) that are paid separately from rent, based on actual costs incurred, and therefore were not included in the right-of-use asset and lease liability but are reflected as an expense in the period incurred. In calculating the present value of the lease payments, the Company has elected to utilize its incremental borrowing rate based on the lease term.

For the three and nine months ended September 30, 2021, lease expense comprised of $7,558 in lease cost from the Company's non-cancellable operating lease.

The remaining lease term and discount rate related to the operating lease are presented in the following table:

September 30, 2021
Weighted-average remaining term – operating lease (in years)

Weighted-average discount rate – operating lease

12  %

Future minimum lease payments as of September 30, 2021 are presented in the following table:

2021 (remaining three months) $ 8,067 
2022 97,291 
2023 83,093 
Total future minimum lease payments: 188,451 
Less imputed interest (24,287)
Total $ 164,164 

Reported as:

Operating lease liability $ 63,581 
Operating lease liability, net of current portion 100,583 
Total lease liability $ 164,164 

General Litigation and Disputes

From time to time, in the normal course of operations, the Company may be a party to litigation and other dispute matters and claims. Litigation can be expensive and disruptive to normal business operations. Moreover, the results of complex legal proceedings are difficult to predict. An unfavorable outcome to any legal matter, if material, could have a materially adverse effect on the Company’s operations or financial position, liquidity or results of operations. As of September 30, 2021, there were no pending or threatened lawsuits or claims that could reasonably be expected to have a material effect on the Company’s financial position or results of operations.