7. Leases

The Company’s leases do not provide an implicit rate that can be readily determined. Therefore, the Company uses discount rates based on the incremental borrowing rate of its current external debt of 3%, 10%, and 17%, depending on the entity and timing of the lease implementation.

The Company’s weighted-average remaining lease term relating to its operating leases is 4 years, with a weighted-average discount rate of 15.21%.

The Company incurred lease expense for its operating leases of $142,411 and $29,225, which was included in general and administrative expenses, and $134,056 and $0, which was included in research and development expenses in the condensed consolidated statements of operations for the periods ended June 30, 2022 and 2021, respectively. 

The following table presents information about the future maturity of the lease liability under the Company’s operating leases as of June 30, 2022: