Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.21.2
LEASES
9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
LEASES

NOTE 10 – LEASES

 

The Company did not have any leases during the period from February 21, 2020 (inception) to September 30, 2020. The components of lease cost for operating leases for the three and nine months ended September 30, 2021, were as follows: 

               
   

Three Months

Ended

September 30, 2021

   

Nine months

Ended

September 20, 2021

 
Lease Cost                
Operating lease cost   $ 121,932     $ 252,951  
Short-term lease cost     61,226       132,697  
Variable lease cost            
Sublease income            
Total lease cost   $ 183,158     $ 385,648  

 

Supplemental cash flow information related to leases for the nine months ended September 30, 2021, was as follows: 

       
    September 30, 2020  
Other Lease Information        
Cash paid for amounts included in the measurement of lease liabilities:        
Operating cash flows from operating leases   $ 194,175  

 

The following table summarizes the lease-related assets and liabilities recorded on the balance sheet at September 30, 2021 and December 31, 2020: 

               
    September 30, 2021     December 31, 2020  
Lease Position                
Operating Leases                
Operating lease right-of-use assets   $ 2,296,872     $ 842,357  
Right of use liability operating lease short term     328,337       141,943  
Right of use liability operating lease long term     1,964,779       614,414  
Total operating lease liabilities   $ 2,293,116     $ 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 in the nine months ended September 30, 2021. 

       
    September 30, 2021  
Lease Term and Discount Rate        
Weighted-average remaining lease term (years)        
Operating leases     4.9  
Weighted-average discount rate        
Operating leases     5.5%  

 

The following table provides the maturities of lease liabilities at September 30, 2021: 

       
    Operating  
    Leases  
Maturity of Lease Liabilities at September 30, 2021        
Remainder of 2021   $ 100,632  
2022     759,522  
2023     1,184,356  
2024     1,143,532  
2025     1,118,146  
2026 and thereafter     910,289  
Total future undiscounted lease payments     5,216,476  
Less: Interest     (599,568 )
Present value of lease liabilities   $ 4,616,908  

 

Note that amounts above include future payments for a lease related to a facility to be constructed in Liberty Hill, Texas by an entity associated with the Company’s founders (see Note 5)