| 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:
| Schedule of lease cost for operating leases |
|
|
|
|
|
|
|
|
| |
|
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:
| Schedule of supplemental cash flow information related to
leases |
|
|
|
|
| |
|
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:
| Schedule of lease-related
assets and liabilities |
|
|
|
|
|
|
|
|
| |
|
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.
| Schedule of right of use asset and lease liability |
|
|
|
|
| |
|
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:
| Schedule of maturities of
lease liabilities |
|
|
|
|
| |
|
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)
|