Quarterly report pursuant to Section 13 or 15(d)

Leases

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Leases
3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Leases

NOTE 7 – LEASES

 

The Company has entered into operating leases primarily for real estate. These leases have terms which range from 4 to 6 years, and often include one or more options to renew. These renewal terms can extend the lease term from 1 year to month-to-month and are included in the lease term when it is reasonably certain that the Company will exercise the option. These operating leases are included in “Right of use assets” on the Company’s December 31, 2020 Consolidated Balance Sheets and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are included in “Current portion of lease liabilities” and “Lease liabilities net of current portion” on the Company’s March 31, 2021 Condensed Consolidated Balance Sheets. Based on the present value of the lease payments for the remaining lease term of the Company’s existing leases, the Company recognized right-of-use assets of approximately $225,300 and lease liabilities for operating leases of approximately $246,100 on January 1, 2019. Operating lease right-of-use assets and liabilities commencing after January 1, 2019 are recognized at commencement date based on the present value of lease payments over the lease term. As of March 31, 2021, total right-of-use assets and operating lease liabilities were approximately $338,300. All operating lease expense is recognized on a straight-line basis over the lease term. In the three months ended March 31, 2021, the Company recognized approximately $20,900 in operating lease costs for right-of-use assets.

 

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. The Company has certain contracts for real estate which may contain lease and non-lease components which it has elected to treat as a single lease component.

 

Information related to the Company’s right-of-use assets and related lease liabilities were as follows (unaudited):

 

    Three Months Ended March 31,  
    2021     2020  
             
Cash paid for operating lease liabilities   $ 77,000     $ 73,600  
Right-of-use assets obtained in exchange for new operating lease obligations     -       13,900  
Weighted-average remaining lease term     0.0 months       8.0 months  
Weighted-average discount rate     10 %     10 %

 

Maturities of lease liabilities as of March 31, 2021 were as follows:        
2022     $ 83,800  
2023       86,300  
2024       88,900  
2025       91,600  
2026       94,300  
Thereafter       40,400  
        485,300  
Less imputed interest       (114,400 )
Total lease liabilities       370,900  
Current operating lease liabilities       48,900  
Non-current operating lease liabilities       322,000  
Total lease liabilities     $ 370,900