Annual report pursuant to Section 13 and 15(d)

Note 6 - Lessee Leases

v3.21.1
Note 6 - Lessee Leases
12 Months Ended
Dec. 31, 2020
Notes  
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.