Note 6 - Leases

9 Months Ended

Sep. 30, 2022

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 which expired in June 2021. Our leases have remaining lease terms of thirteen months to fourteen 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.

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, 2022		Three Months Ended September 30, 2021
Operating lease cost	$	9,791	$	10,150
Finance lease cost:
Amortization of leased assets	$	-	$	-
Interest on lease liabilities		-		-
Total finance lease cost	$	-	$	-

	Nine Months Ended September 30, 2022		Nine Months Ended September 30, 2021
Operating lease cost	$	29,899	$	30,652
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 was as follows:

	Nine Months Ended September, 2022		Nine Months Ended September 30, 2021
Cash paid for amounts included in leases:
Operating cash flows from operating leases	$	30,786	$	31,562
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:

	September 30, 2022			December 30, 2021
Operating leases:
Operating lease right-of-use assets	$	31,339			61,040
Current portion of operating lease obligations	$	30,764			36,123
Operating lease obligations, net of current portion		-			25,187
Total operating lease liabilities	$	30,764			61,310
Finance leases:
Property and equipment, at cost	$	50,037			53,885
Accumulated depreciation		(50,037	)		(53,885	)
Property and equipment, net	$	-			-
Current portion of finance lease obligations	$	-			-
Finance lease obligations, net of current portion		-
Total finance lease liabilities	$	-			-

	September 30, 2022			December 31, 2021
Weighted Average Remaining Lease Term
Operating lease (in Years)		0.9			1.6
Finance leases		-			-
Weighted Average Discount Rate
Operating lease		9.0	%		9.0	%
Finance leases		-	%		-	%

A summary of future minimum payments under non-cancellable operating lease commitment as of September 30, 2022, is as follows:

Years ending December 31,	Total
2022 (remaining portion)		9,456
2023		23,888
Total lease liabilities	$	33,344
Less amount representing interest		(2,580	)
Total		30,764
Less current portion		(30,764	)
	$	-