| Lessee Leases |
Note
6 – Lessee Leases
Operating
leases are comprised of office space and office equipment leases. Fleet leases entered into prior to January 1, 2019, are classified
as operating leases. Fleet leases entered into on or after January 1, 2019, under ASC 842 guidelines, are classified as finance leases.
Gross
right of use assets recorded under finance leases related to WCI vehicle fleet leases were $777,451 and $406,242 as of September 30,
2021 and December 31, 2020, respectively. Accumulated amortization associated with finance leases was $202,861 and $110,164 as of September
30, 2021 and December 31, 2020, respectively.
Lease
costs recognized in our consolidated statements of operations is summarized as follows:
Schedule of lease costs recognized in consolidated statements of operations
| |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| |
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
| |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| Operating lease cost included in cost of goods |
|
$ |
27,868 |
|
|
$ |
35,581 |
|
|
$ |
90,569 |
|
|
$ |
120,153 |
|
| Operating lease cost included in operating costs |
|
|
13,496 |
|
|
|
13,846 |
|
|
|
35,788 |
|
|
|
41,965 |
|
| Total operating lease cost (1) |
|
|
41,364 |
|
|
|
49,427 |
|
|
|
126,357 |
|
|
|
162,118 |
|
| Finance lease cost, included in cost of goods: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization of lease assets |
|
|
41,111 |
|
|
|
19,349 |
|
|
|
90,082 |
|
|
|
50,776 |
|
| Interest on lease liabilities |
|
|
6,765 |
|
|
|
4,719 |
|
|
|
18,595 |
|
|
|
12,689 |
|
| Total finance lease cost |
|
|
47,876 |
|
|
|
24,068 |
|
|
|
108,677 |
|
|
|
63,465 |
|
| Short-term lease cost |
|
|
0 |
|
|
|
5,980 |
|
|
|
2,300 |
|
|
|
23,920 |
|
| Total lease cost |
|
$ |
89,240 |
|
|
$ |
79,475 |
|
|
$ |
237,334 |
|
|
$ |
249,503 |
|
| |
(1) |
Right
of use asset amortization under operating agreements was $39,006 and $45,707 for the three months ended September 30, 2021 and 2020,
respectively. Right of use asset amortization under operating agreements was $106,545 and $141,429 for the nine months ended September
30, 2021 and 2020, respectively. |
Other
information about lease amounts recognized in our condensed consolidated financial statements is summarized as follows:
Schedule
of other information about lease amounts recognized in Condensed Consolidated Financial Statements
| |
|
September 30,
2021
|
|
|
December 31,
2020
|
|
| Weighted-average remaining lease term – operating leases |
|
|
0.7 |
|
|
|
0.93 years |
|
| Weighted-average remaining lease term – finance leases |
|
|
3.83 |
|
|
|
3.41 years |
|
| Weighted-average discount rate – operating leases |
|
|
2.9 |
% |
|
|
10.1 |
% |
| Weighted-average discount rate – finance leases |
|
|
4.6 |
% |
|
|
8.3 |
% |
Finance
lease liabilities were as follows:
Schedule
of Finance lease liabilities
| |
|
September 30,
2021
|
|
|
December 31,
2020
|
|
| Gross finance lease liabilities |
|
$ |
566,867 |
|
|
$ |
310,685 |
|
| Less: imputed interest |
|
|
(45,448 |
) |
|
|
(40,183 |
) |
| Present value of finance lease liabilities |
|
|
521,419 |
|
|
|
270,502 |
|
| Less: current portion |
|
|
(147,527 |
) |
|
|
(79,526 |
) |
| Long-term finance lease liabilities |
|
$ |
373,892 |
|
|
$ |
190,976 |
|
Operating
lease liabilities were as follows:
Schedule
of operating lease liabilities
| |
|
September 30, 2021
|
|
|
December 31, 2020
|
|
| Gross operating lease liabilities |
|
$ |
67,147 |
|
|
$ |
146,171 |
|
| Less: imputed interest |
|
|
(2,183 |
) |
|
|
(6,863 |
) |
| Present value of operating lease liabilities |
|
|
64,964 |
|
|
|
139,308 |
|
| Less: current portion |
|
|
(52,587 |
) |
|
|
(123,158 |
) |
| Long-term operating lease liabilities |
|
$ |
12,377 |
|
|
$ |
16,150 |
|
Note
6 – Lessee Leases (continued)
Lease
maturities were as follows:
Schedule of lease maturities
| Maturity of lease liabilities |
|
|
|
|
|
|
| 12 months ending September 30, |
|
Finance leases |
|
|
Operating leases |
|
| 2022 |
|
$ |
147,527 |
|
|
$ |
52,587 |
|
| 2023 |
|
|
136,233 |
|
|
|
12,377 |
|
| 2024 |
|
|
114,082 |
|
|
|
- |
|
| 2025 |
|
|
89,908 |
|
|
|
- |
|
| 2026 |
|
|
33,669 |
|
|
|
- |
|
| Total |
|
|
521,419 |
|
|
|
64,964 |
|
| Less: Current maturities |
|
|
147,527 |
|
|
|
52,587 |
|
| Long-term liability |
|
$ |
373,892 |
|
|
$ |
12,377 |
|
|