Note 11 - Leases

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Lessee, Operating Leases and Finance Lease [Text Block]

NOTE 11. 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 nineteen months to twenty 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:

	2021		2020
Operating lease cost	$	40,796	$	38,163
Finance lease cost:
Amortization of leased assets	$	5,557	$	10,813
Interest on lease liabilities		86		832
Total finance lease cost	$	5,643	$	11,645

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

	2021		2020
Cash paid for amounts included in leases:
Operating cash flows from operating leases	$	42,006	$	39,583
Operating cash flows from finance leases	$	86	$	832
Financing cash flows from finance leases	$	2,907	$	9,627
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	-	$	-
Finance leases	$	-	$	-

Supplemental balance sheet information related to leases was as follows:

Operating leases:	December 31, 2021			December 31, 2020
Operating lease right-of-use assets	$	61,040		$	93,457
Current portion of operating lease obligations	$	36,123		$	33,118
Operating lease obligations, net of current portion		25,187			61,794
Total operating lease liabilities	$	61,310		$	94,912
Finance leases:
Property and equipment, at cost	$	53,885		$	54,066
Accumulated depreciation		(53,885	)		(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

	Year Ended December 31, 2021
Weighted Average Remaining Lease Term (in years)
Operating lease		1.6
Finance leases		-
Weighted Average Discount Rate
Operating lease		9.0	%
Finance leases		-	%

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, 2021 is as follows:

Years ending December 31,	Total
2022	$	41,179
2023		25,466
Total lease liabilities		66,645
Less amount representing interest		(5,335	)
Total		61,310
Less current portion		(36,123	)
	$	25,187