| Lessee Leases |
Note
5 – Lessee Leases
Our
operating leases are comprised of office space and office equipment leases. Fleet and vehicle leases entered into prior to January 1,
2019, under ASC 840 guidelines, have 4 year terms and are classified as operating leases. Fleet leases entered into beginning January
1, 2019, under ASC 842 guidelines, are expected to be extended to 5 year terms and are classified as finance leases.
Gross
right of use assets recorded under finance leases related to WCI vehicle fleet leases were $882,081 and $406,242 as of December 31, 2021
and 2020, respectively. Accumulated amortization associated with finance leases was $236,470 and $110,164 as of December 31, 2021 and
2020, respectively.
Mentor
Capital, Inc.
Notes
to Consolidated Financial Statements
December
31, 2021 and 2020
Lease
costs recognized in our consolidated income statements is summarized as follows:
Schedule of lease costs recognized in consolidated statements of operations
| |
|
Year Ended December 31, 2021
|
|
|
Year Ended December 31, 2020
|
|
| Operating lease cost included in cost of goods |
|
$ |
100,222 |
|
|
$ |
155,456 |
|
| Operating lease cost included in operating costs |
|
|
47,287 |
|
|
|
57,363 |
|
| Total operating lease cost (1) |
|
|
147,509 |
|
|
|
212,819 |
|
| Finance lease cost, included in cost of goods: |
|
|
|
|
|
|
|
|
| Amortization of lease assets |
|
|
151,200 |
|
|
|
73,524 |
|
| Interest on lease liabilities |
|
|
24,719 |
|
|
|
18,184 |
|
| Total finance lease cost |
|
|
175,919 |
|
|
|
91,708 |
|
| Short-term lease cost |
|
|
- |
|
|
|
23,920 |
|
| Total lease cost |
|
$ |
323,428 |
|
|
$ |
328,447 |
|
Right
of use asset amortization under operating agreements was $146,068 and $194,957 for the years ended December 31, 2021 and 2020.
Other
information about lease amounts recognized in our consolidated financial statements is summarized as follows:
Schedule of other information about lease amounts recognized in Condensed Consolidated Financial Statements
| |
|
December 31, 2021
|
|
|
December 31, 2020
|
|
| Weighted-average remaining lease term – operating leases |
|
|
0.95 years |
|
|
|
0.93 years |
|
| Weighted-average remaining lease term – finance leases |
|
|
3.83 years |
|
|
|
3.41 years |
|
| Weighted-average discount rate – operating leases |
|
|
5.7 |
% |
|
|
10.1 |
% |
| Weighted-average discount rate – finance leases |
|
|
3.8 |
% |
|
|
8.3 |
% |
Finance
lease liabilities were as follows:
Schedule of Finance lease liabilities
| |
|
December 31, 2021
|
|
|
December 31, 2020
|
|
| Gross finance lease liabilities |
|
$ |
634,192 |
|
|
$ |
310,685 |
|
| Less: imputed interest |
|
|
(51,212 |
) |
|
|
(40,183 |
) |
| Present value of finance lease liabilities |
|
|
582,980 |
|
|
|
270,502 |
|
| Less: current portion |
|
|
(167,515 |
) |
|
|
(79,526 |
) |
| Long-term finance lease liabilities |
|
$ |
415,465 |
|
|
$ |
190,976 |
|
Operating
lease liabilities were as follows:
Schedule of operating lease liabilities
| |
|
December 31, 2021
|
|
|
December 31, 2020
|
|
| Gross operating lease liabilities |
|
$ |
55,865 |
|
|
$ |
146,171 |
|
| Less: imputed interest |
|
|
(8,832 |
) |
|
|
(6,863 |
) |
| Present value of operating lease liabilities |
|
|
47,033 |
|
|
|
139,308 |
|
| Less: current portion |
|
|
(42,058 |
) |
|
|
(123,158 |
) |
| Long-term operating lease liabilities |
|
$ |
4,975 |
|
|
$ |
16,150 |
|
Lease
maturities are disclosed in Note 14.
Mentor
Capital, Inc.
Notes
to Consolidated Financial Statements
December
31, 2021 and 2020
|