Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Lessee Leases

v3.20.2
Note 6 - Lessee Leases
9 Months Ended
Sep. 30, 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, 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 $371,345 and $206,332 as of September 30, 2020 and December 31, 2019, respectively. Accumulated amortization associated with finance leases was $87,416 and $36,640 as of September 30, 2020 and December 31, 2019, respectively.

 

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

 

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

 

2020

 

2019

 

2020

 

2019

Operating lease cost included in cost of goods

$

35,581

$

51,440

$

120,153

$

142,535

Operating lease cost included in operating costs

 

13,846

 

14,410

 

41,965

 

42,698

Total operating lease cost (1)

 

49,427

 

65,850

 

162,118

 

185,233

Finance lease cost, included in cost of goods:

 

 

 

 

 

 

 

 

Amortization of lease assets

 

19,349

 

11,140

 

50,776

 

23,583

Interest on lease liabilities

 

4,719

 

3,061

 

12,689

 

5,211

Total finance lease cost

 

24,068

 

14,201

 

63,465

 

28,794

Short-term lease cost

 

5,980

 

8,570

 

23,920

 

25,310

Total lease cost

$

79,475

$

88,621

$

249,503

$

239,337

 

(1)Right of use asset amortization under operating agreements was $45,707 and $49,804 for the three months ended September 30, 2020 and 2019, respectively. Right of use asset amortization under operating agreements was $141,429 and $143,571 for the nine months ended September 30, 2020 and 2019, respectively.  

 

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

 

 

September 30,

2020

 

December 31,

2019

Weighted-average remaining lease term – operating leases

1.13 years

 

1.73 years

Weighted-average remaining lease term – finance leases

3.50 years

 

3.25 years

Weighted-average discount rate – operating leases

10.1%

 

10.2%

Weighted-average discount rate – finance leases

8.4%

 

9.0%

 

Finance lease liabilities were as follows:

 

 

 

September 30,

2020

 

December 31,

2019

Gross finance lease liabilities

$

301,499

$

208,641

Less: imputed interest

 

(43,880)

 

(54,548)

Present value of finance lease liabilities

 

257,619

 

154,093

Less: current portion

 

(71,616)

 

(41,675)

Long-term finance lease liabilities

$

186,003

$

112,418

 

 

Operating lease liabilities were as follows:

 

 

 

September 30,

2020

 

December 31,

2019

Gross operating lease liabilities

$

210,036

$

356,958

Less: imputed interest

 

(26,695)

 

(31,622)

Present value of operating lease liabilities

 

183,341

 

325,336

Less: current portion

 

(153,602)

 

(184,436)

Long-term operating lease liabilities

$

29,739

$

140,900