| LEASES |
NOTE 11 – LEASES
The components of lease cost for operating leases for the three months
ended March 31, 2022 and 2021 were as follows:
| Schedule of lease cost for operating leases |
|
|
|
|
|
|
| |
|
2022 |
|
|
2021 |
|
| Lease Cost |
|
|
|
|
|
|
|
|
| Operating lease cost |
|
$ |
158,672 |
|
|
$ |
37,025 |
|
| Short-term lease cost |
|
|
17,120 |
|
|
|
33,360 |
|
| Variable lease cost |
|
|
– |
|
|
|
– |
|
| Sublease income |
|
|
– |
|
|
|
– |
|
| Total lease cost |
|
$ |
175,792 |
|
|
$ |
70,385 |
|
Supplemental cash flow information related to
leases for the three months ended March 31, 2022, was as follows:
| Schedule of supplemental cash flow information related to leases |
|
|
|
| |
|
March 31, 2022 |
|
| Other Lease Information |
|
|
|
|
| Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
| Operating cash flows from operating leases |
|
$ |
116,716 |
|
The following table summarizes the lease-related assets and liabilities
recorded on the balance sheet at March 31, 2022 and December 31, 2021:
| Schedule of lease-related assets and liabilities |
|
|
|
|
|
|
| |
|
March 31, 2022
|
|
|
December 31, 2021
|
|
| Lease Position |
|
|
|
|
|
|
|
|
| Operating Leases |
|
|
|
|
|
|
|
|
| Operating lease right-of-use assets |
|
$ |
2,199,009 |
|
|
$ |
2,182,612 |
|
| Right of use liabilities operating leases short term |
|
|
584,083 |
|
|
|
456,207 |
|
| Right of use liabilities operating leases long term |
|
|
1,697,983 |
|
|
|
1,767,506 |
|
| Total operating lease liabilities |
|
$ |
2,282,066 |
|
|
$ |
2,223,713 |
|
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 $143,540 for leases entered into during the three months ended March 31, 2022.
| Schedule of right of use asset and lease liability |
|
|
|
| Lease Term and Discount Rate |
|
|
|
| Weighted-average remaining lease term (years) |
|
|
|
| Operating leases |
|
|
3.4 |
|
| Weighted-average discount rate |
|
|
|
|
| Operating leases |
|
|
5.5% |
|
The following table provides the maturities of
lease liabilities at March 31, 2022:
| Schedule of maturities of lease liabilities |
|
|
|
| |
|
Operating |
|
| |
|
Leases |
|
| |
|
|
|
| Remainder of 2022 |
|
$ |
655,456 |
|
| 2023 |
|
|
1,184,013 |
|
| 2024 |
|
|
1,143,179 |
|
| 2025 |
|
|
1,117,782 |
|
| 2026 |
|
|
922,774 |
|
| Total future undiscounted lease payments |
|
|
5,023,204 |
|
| Less: Interest |
|
|
(557,898 |
) |
| Present value of lease liabilities |
|
$ |
4,465,306 |
|
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)
|