Note 6 - Leases

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Lessee, Operating Leases and Finance Lease [Text Block]

Note 6. Leases

We have an operating lease for our corporate offices in Canada and finance leases for furniture and equipment. Our leases have remaining lease terms of twenty-two months to twenty-three 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 leased assets, as well as operating lease current and noncurrent obligations on our balance sheets for the right to use the building in our business. Our finance leases represent furniture and office equipment; we report the furniture and equipment, as well as finance lease current and noncurrent obligations on our balance sheet.

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 were as follows:

	Three Months Ended September 30, 2021		Three Months Ended September 30, 2020
Operating lease cost	$	10,150	$	9,612
Finance lease cost:
Amortization of leased assets	$	-	$	2,698
Interest on lease liabilities		-		168
Total finance lease cost	$	-	$	2,866

	Nine Months Ended September 30, 2021		Nine Months Ended September 30, 2020
Operating lease cost	$	30,652	$	28,347
Finance lease cost:
Amortization of leased assets	$	5,557	$	7,763
Interest on lease liabilities		86		664
Total finance lease cost	$	5,643	$	8,427

Supplemental cash flow information related to leases was as follows:

	Nine Months Ended September 30, 2021		Nine Months Ended September 30, 2020
Cash paid for amounts included in leases:
Operating cash flows from operating leases	$	31,562	$	29,402
Operating cash flows from finance leases	$	86	$	664
Financing cash flows from finance leases	$	2,907	$	7,065
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	-	$	-
Finance leases	$	-	$	-

Supplemental balance sheet information related to leases was as follows:

	September 30, 2021			December 31, 2020
Operating leases:
Operating lease right-of-use assets	$	69,444			93,457
Current portion of operating lease obligations	$	36,169			33,118
Operating lease obligations, net of current portion		33,843			61,794
Total operating lease liabilities	$	70,012			94,912
Finance leases:
Property and equipment, at cost	$	54,346			54,066
Accumulated depreciation		(54,346	)		(48,659	)
Property and equipment, net	$	-			5,407
Current portion of finance lease obligations	$	-			2,844
Finance lease obligations, net of current portion		-			-
Total finance lease liabilities	$	-			2,844

	September 30, 2021			December 31, 2020
Weighted Average Remaining Lease Term
Operating lease (years)		1.8			2.6
Finance leases (years)		0.0			0.3
Weighted Average Discount Rate
Operating lease		9.0	%		9.0	%
Finance leases		-	%		9.7	%

A summary of future minimum payments under non-cancellable operating lease commitment as of September 30, 2021 is as follows:

Years ending December 31,	Total
2021 (remaining months)	$	10,270
2022		41,081
2023		25,405
Total lease liabilities	$	76,756
Less amount representing interest		(6,744	)
Total		70,012
Less current portion		(36,169	)
	$	33,843