Note 18 - Lease Commitments
|12 Months Ended|
Dec. 31, 2018
|Note 18 - Lease Commitments||
Note 18 Lease commitments
Mentor currently rents approximately 2,000 square feet of office space under a one year lease in Ramona, California in San Diego County, expiring in August 2019. For the years ended December 31, 2018 and 2017, rent expense was $32,080 and $30,240, respectively.
On October 11, 2018, Mentor leased a vehicle with an initial term of 3 years expiring in October 2021. For the years ended December 31, 2018 and 2017, vehicle lease expense of $2,587 and $0, respectively, is included in selling, general and administrative expenses in the consolidated income statement.
WCI rents approximately 3,000 of office and warehouse space in Tempe, Arizona under an operating lease expiring in January 2020 For the years ended December 31, 2018 and 2017, rent expense was $26,400 and $24,200, respectively.
WCI leases vehicles under a master fleet management agreement with initial terms of 4 years expiring through July 2022. For the years ended December 31, 2018 and 2017, vehicle lease expense of $231,817 and $195,095 is included in cost of sales in the consolidated income statement, respectively.
WCI has two small operating leases on office equipment entered into in 2015 with terms of 5 years expiring in 2020.
The approximate remaining annual minimum lease payments under the non-cancelable operating leases existing as of December 31, 2018 with original or remaining terms over one year were as follows:
Subsequent to year-end, on January 1, 2019, the Company adopted ASU 2016-02, Leases, which requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet for the rights and obligations created by all leases, including operating leases with terms of more than 12 months.
Tabular disclosure for lessee's operating leases. Includes, but is not limited to, description of lessee's operating lease, existence and terms of renewal or purchase options and escalation clauses, restrictions imposed by lease, such as those concerning dividends, additional debt, and further leasing, rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions.
Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef