Note 12 - Leases

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Lessee, Operating Leases and Finance Lease [Text Block]

NOTE 12. Leases

We have an operating lease for our corporate offices in Canada and finance leases for furniture and equipment, which expired in June 2021. Our leases have remaining lease terms of seven months to eight months, and our primary operating leases include options to extend the leases for four years. Future renewal options that are not likely to be executed as of the balance sheet date are excluded from right-of-use assets and related lease liabilities.

We report operating lease assets, as well as operating lease current and noncurrent obligations on our consolidated balance sheets for the right to use the building in our business.

Generally, interest rates are stated in our leases for equipment. When no interest rate is stated in a lease, however, we review the interest rates implicit in our recent finance leases to estimate our incremental borrowing rate. We determine the rate implicit in a lease by using the most recent finance lease rate, or other method we think most closely represents our incremental borrowing rate.

The components of lease expense for the years ended December 31, were as follows:

	2022		2021
Operating lease cost	$	39,324	$	40,796
Finance lease cost:
Amortization of leased assets	$	-	$	5,557
Interest on lease liabilities		-		86
Total finance lease cost	$	-	$	5,643

Supplemental cash flow information related to leases for the years ended December 31, was as follows:

	2022		2021
Cash paid for amounts included in leases:
Operating cash flows from operating leases	$	38,355	$	42,006
Operating cash flows from finance leases	$	-	$	86
Financing cash flows from finance leases	$	-	$	2,907
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	-	$	-
Finance leases	$	-	$	-

Supplemental balance sheet information related to leases was as follows:

	December 31, 2022		December 31, 2021
Operating leases:
Operating lease right-of-use assets	$	23,063	$	61,040
Current portion of operating lease obligations	$	22,199	$	36,123
Operating lease obligations, net of current portion		-		25,187
Total operating lease liabilities	$	22,199	$	61,310

	Year Ended December 31, 2022
Weighted Average Remaining Lease Term
Operating lease (in years)		0.6
Weighted Average Discount Rate
Operating lease		9.0	%

Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019.

A summary of future minimum payments under non-cancellable operating lease commitment as of December 31, 2022 is as follows:

Years ending December 31,	Total
2023	$	23,751
Total lease liabilities		23,751
Less amount representing interest		(1,552	)
Total		22,199
Less current portion		(22,199	)
	$	-