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| Leases | 12. Leases
During the year ended December 31, 2022, the Company signed a lease agreement for approximately 20,296 square feet to be used as its primary corporate office and R&D facility pursuant to a five-year lease, dated June 1, 2022, for a variable rate averaging $20,242 per month over the lifetime of the lease not inclusive of additional fees, which also vary and average $5,033 per month in 2025 not inclusive of taxes.
During the year ended December 31, 2023, the Company signed a lease agreement for office space to be used as an R&D facility pursuant to a one-year lease with an option to extend the lease for an additional year, dated June 1, 2023, for a monthly rent of $3,350. The lease was renewed effective June 1, 2024 at a rate of $3,600 per month with a termination date of May 31, 2025. The lease was not renewed. The Company accounted for the lease under ASC 842 whereby it recognizes a lease liability and a right-of-use asset. The lease liability is measured at the present value of the remaining lease payments, discounted using the Company’s incremental borrowing rate of 10%. The Company measured the right-of-use asset at an initial amount equal to the lease liability.
On April 1, 2025, the Company signed a lease agreement for 12,500 square feet of office space to be used as a R&D facility pursuant to a three-year lease with an option to extend the lease for an additional two years. The lease was effective on May 1, 2025 at a rate of $9,659 per month with a termination date of April 30, 2028. The Company accounted for the lease under ASC 842 whereby it recognizes a lease liability and a right-of-use asset. The lease liability is measured at the present value of the remaining lease payments, discounted using the Company’s incremental borrowing rate of 15%. The Company measured the right-of-use asset at the initial amount equity to the lease liability.
The Company’s right-of-use asset and lease liability as of June 30, 2025, and December 31, 2024, are as follows:
The following is a summary of the Company’s total lease costs during the six months ended June 30, 2025 and 2024:
The following is a summary of cash paid during the six months ended June 30, 2025 and 2024 for amounts included in the measurement of lease liabilities:
The following are future minimum annual lease payments as of June 30, 2025:
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