Annual report pursuant to Section 13 and 15(d)

Lessee Leases

v3.22.1
Lessee Leases
12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
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:

 

   

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:

 

   

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:

 

   

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:

 

   

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