Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Lessee Leases

v3.20.1
Note 6 - Lessee Leases
3 Months Ended
Mar. 31, 2020
Notes  
Note 6 - Lessee Leases

Note 6 – Lessee Leases

 

Our operating leases are comprised of office space and office equipment leases. Fleet leases entered into prior to January 1, 2019, under ASC 840 guidelines, are classified as operating leases. Fleet leases entered into beginning January 1, 2019, under ASC 842 guidelines, are classified as finance leases.

 

Gross right of use assets recorded under finance leases related to WCI vehicle fleet leases were $296,716 and $206,332 as of March 31, 2020 and December 31, 2019, respectively. Accumulated amortization associated with finance leases was $50,633 and $36,640 as of March 31, 2020 and December 31, 2019, respectively.

 

Lease costs recognized in our consolidated statements of operations is summarized as follows:

 

 

 

Three Months Ended

 

 

March 31,

2020

 

March 31,

2019

Operating lease cost included in cost of goods

$

45,956

$

50,924

Operating lease cost included in operating costs

 

14,274

 

19,629

Total operating lease cost (1)

 

60,230

 

70,553

Finance lease cost, included in cost of goods:

 

 

 

 

Amortization of lease assets

 

13,993

 

5,367

Interest on lease liabilities

 

3,494

 

260

Total finance lease cost

 

17,487

 

5,627

Short-term lease cost

 

8,970

 

8,370

Total lease cost

$

86,687

$

84,550

 

(1)Right of use asset amortization under operating agreements was $45,896 and $42,216 for the three months ended March 31, 2020 and 2019, respectively.  

Other information about lease amounts recognized in our condensed consolidated financial statements is summarized as follows:

 

 

March 31,

2020

 

December 31,

2019

Weighted-average remaining lease term – operating leases

1.34 years

 

1.73 years

Weighted-average remaining lease term – finance leases

3.61 years

 

3.25 years

Weighted-average discount rate – operating leases

10.3%

 

10.2%

Weighted-average discount rate – finance leases

8.6%

 

9.0%

 

Finance lease liabilities were as follows:

 

 

 

March 31,

2020

 

December 31,

2019

Gross finance lease liabilities

$

267,203

$

208,641

Less: imputed interest

 

(43,292)

 

(54,548)

Present value of finance lease liabilities

 

223,911

 

154,093

Less: current portion

 

(57,895)

 

(41,675)

Long-term finance lease liabilities

$

166,016

$

112,418

 

Operating lease liabilities were as follows:

 

 

 

March 31,

2020

 

December 31,

2019

Gross operating lease liabilities

$

297,102

$

356,958

Less: imputed interest

 

(23,807)

 

(31,622)

Present value of operating lease liabilities

 

273,295

 

325,336

Less: current portion

 

(171,306)

 

(184,436)

Long-term operating lease liabilities

$

101,989

$

140,900