Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Sep. 30, 2021



The Company has entered into operating leases primarily for real estate. These leases have terms which range from 1 to 8 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 September 30, 2021, 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 September 30, 2021, 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 $226,600 and lease liabilities for operating leases of approximately $246,100 on January 1, 2019, when the new lease standard was effective. 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 September 30, 2021, total right-of-use assets and operating lease liabilities were approximately $425,000 and $457,400, respectively. All operating lease expense is recognized on a straight-line basis over the lease term. In the nine months ended September 30, 2021, the Company recognized approximately $93,700 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):


    2021     2020  
    Nine Months Ended September 30,  
    2021     2020  
Cash paid for operating lease liabilities   $ 210,200     $ 234,600  
Right-of-use assets obtained in exchange for new operating lease obligations     -       59,100  
Weighted-average remaining lease term     59 months       7 months  
Weighted-average discount rate     10 %     10 %


Maturities of lease liabilities as of September 30, 2021, were as follows:


2022   $ 85,100  
2023     87,600  
2024     90,300  
2025     93,000  
2026     87,600  
Thereafter     -  
Lease liabilities     443,600  
Less imputed interest     (96,400 )
Total lease liabilities     347,200