Quarterly report pursuant to Section 13 or 15(d)

Lessee Leases

v3.21.2
Lessee Leases
 6 Months Ended
Jun. 30, 2021
Leases [Abstract]  
Lessee Leases

Note 6 – Lessee Leases

 

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 on or after 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 $777,451 and $406,242 as of June 30, 2021 and December 31, 2020, respectively. Accumulated amortization associated with finance leases was $161,750 and $110,164 as of June 30, 2021 and December 31, 2020, respectively.

 

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

 

    2021     2020     2021     2020  
    Three Months Ended June 30,     Six Months Ended June 30,  
    2021     2020     2021     2020  
Operating lease cost included in cost of goods   $ 29,837     $ 38,615     $ 62,701     $ 84,571  
Operating lease cost included in operating costs     13,496       13,846       24,592       28,119  
Total operating lease cost (1)     43,333       52,461       87,293       112,690  
Finance lease cost, included in cost of goods:                                
Amortization of lease assets     38,952       17,434       51,586       31,427  
Interest on lease liabilities     6,363       4,475       11,830       7,969  
Total finance lease cost     45,315       21,909       63,416       39,396  
Short-term lease cost     0       8,970       2,300       17,940  
Total lease cost   $ 88,648     $ 83,340     $ 153,009     $ 170,026  

 

(1) Right of use asset amortization under operating agreements was $26,558 and $49,846 for the three months ended June 30, 2021 and 2020, respectively. Right of use asset amortization under operating agreements was $67,539 and $95,722 for the six months ended June 30, 2021 and 2020, respectively.

 

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

 

    June 30, 2021     December 31, 2020  
Weighted-average remaining lease term – operating leases     1.29 years       .93 years  
Weighted-average remaining lease term – finance leases     4.05 years       3.41 years  
Weighted-average discount rate – operating leases     7.9 %     10.1 %
Weighted-average discount rate – finance leases     5.5 %     8.3 %

 

Finance lease liabilities were as follows:

 

    June 30, 2021     December 31, 2020  
Gross finance lease liabilities   $ 609,184     $ 310,685  
Less: imputed interest     (52,213 )     (40,183 )
Present value of finance lease liabilities     556,971       270,502  
Less: current portion     (145,399 )     (79,526 )
Long-term finance lease liabilities   $ 411,572     $ 190,976  

 

Operating lease liabilities were as follows:

    June 30, 2021     December 31, 2020  
Gross operating lease liabilities   $ 108,208     $ 146,171  
Less: imputed interest     (3,616 )     (6,863 )
Present value of operating lease liabilities     104,592       139,308  
Less: current portion     (83,920 )     (123,158 )
Long-term operating lease liabilities   $ 20,672     $ 16,150  

 

 

Note 6 – Lessee Leases (continued)

 

Lease maturities were as follows:

 

Maturity of lease liabilities            
12 months ending June 30,   Finance leases     Operating leases  
2022   $ 145,399     $ 83,920  
2023     143,929       20,672  
2024     116,128       -  
2025     99,870       -  
2026     51,645       -  
Total     556,971       104,592  
Less: Current maturities     145,399       83,920  
Long-term liability   $ 411,572     $ 20,672