| Note 6 - 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 $406,242 and $206,332 as of December 31, 2020 and 2019, respectively. Accumulated amortization associated with finance leases was $110,164 and $36,640 as of December 31, 2020 and 2019, respectively.
Lease costs recognized in our consolidated income statements is summarized as follows:
|
|
Year Ended
December 31,
2020
|
|
Year Ended
December 31,
2019
|
Operating lease cost included in cost of goods |
$ |
155,456 |
$ |
205,015 |
Operating lease cost included in operating costs |
|
57,363 |
|
56,881 |
Total operating lease cost (1) |
|
212,819 |
|
261,896 |
Finance lease cost, included in cost of goods: |
|
|
|
|
Amortization of lease assets |
|
73,524 |
|
36,640 |
Interest on lease liabilities |
|
18,184 |
|
9,640 |
Total finance lease cost |
|
91,708 |
|
46,280 |
Short-term lease cost |
|
23,920 |
|
34,280 |
Total lease cost |
$ |
328,447 |
$ |
342,456 |
Right of use asset amortization under operating agreements was $194,957 and $214,030 for the years ended December 31, 2020 and 2019.
Other information about lease amounts recognized in our consolidated financial statements is summarized as follows:
|
December 31,
2020
|
|
December 31,
2019
|
Weighted-average remaining lease term operating leases |
0.93 years |
|
1.73 years |
Weighted-average remaining lease term finance leases |
3.41 years |
|
3.25 years |
Weighted-average discount rate operating leases |
10.1% |
|
10.2% |
Weighted-average discount rate finance leases |
8.3% |
|
9.0% |
Finance lease liabilities were as follows:
|
|
December 31,
2020
|
|
December 31,
2019
|
Gross finance lease liabilities |
$ |
310,685 |
$ |
208,641 |
Less: imputed interest |
|
(40,183) |
|
(54,548) |
Present value of finance lease liabilities |
|
270,502 |
|
154,093 |
Less: current portion |
|
(79,526) |
|
(41,675) |
Long-term finance lease liabilities |
$ |
190,976 |
$ |
112,418 |
Operating lease liabilities were as follows:
|
|
December 31,
2020
|
|
December 31,
2019
|
Gross operating lease liabilities |
$ |
146,171 |
$ |
356,958 |
Less: imputed interest |
|
(6,863) |
|
(31,622) |
Present value of operating lease liabilities |
|
139,308 |
|
325,336 |
Less: current portion |
|
(123,158) |
|
(184,436) |
Long-term operating lease liabilities |
$ |
16,150 |
$ |
140,900 |
Lease maturities are disclosed in Note 15.
|