COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2023

Commitments And Contingencies [Abstract]

NOTE 8–COMMITMENTS AND CONTINGENCIES

The Company currently occupies approximately 8,029 square feet of office and manufacturing space leased from D&M Management, Inc. The building is located in a commercial business district in West Jordan, Utah which consists primarily of high-tech manufacturing firms and it is located adjacent to a major intersection, allowing easy access to Utah’s main interstate highway. The lease is for $6,787 per month and is for a period of twelve months with a 90-day notice clause if our intent is to renew the lease for additional periods. Minimum payments under the lease for the current term and assuming the lease renewal for an additional three years is as follows:

2024	$ 83,103
2025	85,596
2026	88,164
2027	59,948
Total payments	$ 316,811
Imputed interest	(53,347)
Lease liability as of period end	263,464
Short-term lease liability	(59,404)
Lease liability – long term	$ 204,060

We recognize lease expense on a straight-line basis over the term of the lease.

For the

Year 2023

Lease expense

$81,722

Our building lease does not specify an implicit rate of interest. Therefore, we estimate our incremental borrowing rate, which is defined as the interest rate we would pay to borrow on a collateralized basis, considering such factors as length of lease term and the risks of the economic environment in which the leased asset operates. As of December 31, 2023, the following disclosures for remaining lease term and incremental borrowing rates were applicable:

December 31,

2023

Weighted average remaining lease term

3.67 years

Weighted average discount rate

FLEXPOINT SENSOR SYSTEMS INC 10-K