Annual report pursuant to Section 13 and 15(d)

LEASES

v3.22.1
LEASES
12 Months Ended
Dec. 31, 2021
Leases  
LEASES

NOTE 11 – LEASES

 

The components of lease cost for operating leases for the year ended December 31, 2021 and the period from February 21, 2020 (inception) to December 31, 2020, were as follows:

               
    2021     2020  
Lease Cost                
Operating lease cost   $ 398,440     $ 16,000  
Short-term lease cost     219,604       11,120  
Variable lease cost            
Sublease income            
Total lease cost   $ 618,044     $ 27,120  

 

Supplemental cash flow information related to leases for the year ended December 31, 2021 and the period from February 21, 2020 (inception) to December 31, 2020, was as follows:

               
    2021     2020  
Other Lease Information                
Cash paid for amounts included in the measurement of lease liabilities:                
Operating cash flows from operating leases   $ 323,162     $ 194,175  

 

The following table summarizes the lease-related assets and liabilities recorded on the balance sheet at December 31, 2021 and December 31, 2020:

               
    2021     2020  
Lease Position                
Operating Leases                
Operating lease right-of-use assets   $ 2,182,612     $ 842,357  
Right of use liability operating lease short term     456,207       141,943  
Right of use liability operating lease long term     1,767,506       614,414  
Total operating lease liabilities   $ 2,223,713     $ 756,357  

 

 

The Company utilizes the incremental borrowing rate in determining the present value of lease payments unless the implicit rate is readily determinable. The Company recognized an initial right of use asset and lease liability of $1,707,466 for leases entered into during the year ended December 31, 2021.

               
Lease Term and Discount Rate            
Weighted-average remaining lease term (years)                
Operating leases     4.4       4.9  
Weighted-average discount rate                
Operating leases     5.5%       5.5%  

 

The following table provides the maturities of lease liabilities at December 31, 2021:

     
    Operating  
    Leases  
       
2022   $ 770,615  
2023     1,184,356  
2024     1,143,532  
2025     1,118,146  
2026     910,289  
Total future undiscounted lease payments     5,126,937  
Less: Interest     (610,866 )
Present value of lease liabilities   $ 4,516,070  

 

Note that amounts above include future payments for a lease signed as of December 31, 2021 related to a facility to be constructed in Liberty Hill, Texas by an entity associated with the Company’s founders (see Note 6)