| Lessee Leases |
Note
6 – 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 $1,289,714 and $882,081 as of December 31,
2022 and 2021, respectively. Accumulated amortization associated with finance leases was $394,391 and $236,470 as of December 31, 2022
and 2021, respectively.
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, 2022 |
|
|
Year Ended December 31, 2021 |
|
| Operating lease cost included in cost of goods |
|
$ |
13,054 |
|
|
$ |
100,222 |
|
| Operating lease cost included in operating costs |
|
|
54,571 |
|
|
|
47,287 |
|
| Total operating lease cost (1) |
|
|
67,625 |
|
|
|
147,509 |
|
| Finance lease cost, included in cost of goods: |
|
|
|
|
|
|
|
|
| Amortization of lease assets |
|
|
278,006 |
|
|
|
151,200 |
|
| Interest on lease liabilities |
|
|
39,931 |
|
|
|
24,719 |
|
| Total finance lease cost |
|
|
317,937 |
|
|
|
175,919 |
|
| Short-term lease cost |
|
|
- |
|
|
|
- |
|
| Total lease cost |
|
$ |
385,562 |
|
|
$ |
323,428 |
|
Right
of use asset amortization under operating agreements was $223,151 and $146,068 for the years ended December 31, 2022 and 2021.
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, 2022 |
|
|
December 31, 2021 |
|
| Weighted-average remaining lease term – operating leases |
|
|
4.75 years |
|
|
|
0.95 years |
|
| Weighted-average remaining lease term – finance leases |
|
|
4.63 years |
|
|
|
3.83 years |
|
| Weighted-average discount rate – operating leases |
|
|
6.0 |
% |
|
|
5.7 |
% |
| Weighted-average discount rate – finance leases |
|
|
5.5 |
% |
|
|
3.8 |
% |
Finance
lease liabilities were as follows:
Schedule
of finance lease liabilities
| |
|
December 31, 2022 |
|
|
December 31, 2021 |
|
| Gross finance lease liabilities |
|
$ |
897,849 |
|
|
$ |
634,192 |
|
| Less: imputed interest |
|
|
(89,939 |
) |
|
|
(51,212 |
) |
| Present value of finance lease liabilities |
|
|
807,910 |
|
|
|
582,980 |
|
| Less: current portion |
|
|
(232,058 |
) |
|
|
(167,515 |
) |
| Long-term finance lease liabilities |
|
$ |
575,852 |
|
|
$ |
415,465 |
|
Mentor
Capital, Inc.
Notes
to Consolidated Financial Statements
December
31, 2022 and 2021
Operating
lease liabilities were as follows:
Schedule
of operating lease liabilities
| |
|
December 31, 2022 |
|
|
December 31, 2021 |
|
| Gross operating lease liabilities |
|
$ |
428,946 |
|
|
$ |
55,865 |
|
| Less: imputed interest |
|
|
(58,782 |
) |
|
|
(8,832 |
) |
| Present value of operating lease liabilities |
|
|
370,164 |
|
|
|
47,033 |
|
| Less: current portion |
|
|
(62,861 |
) |
|
|
(42,058 |
) |
| Long-term operating lease liabilities |
|
$ |
307,303 |
|
|
$ |
4,975 |
|
Lease
maturities are disclosed in Note 15.
|