Leases

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases

10. Leases

The Company leases an office, a manufacturing plant and certain equipment under non-cancelable operating lease agreements. The leases have remaining lease terms of two and a half years to five years. The plant lease includes an option to extend the lease for up to five years. In addition, CAT leases a vacant retail space that has been converted for the use of COVID-19 testing, vaccine distribution and a medical lab with a lease term for eighteen months.

 Supplemental balance sheet information related to leases is as follows:   

Balance Sheet Location		June 30, 2021
Operating Leases
Right-of-use assets, net		$	1,436,717
Current liabilities	Lease liability, current maturities		(416,405	)
Non-current liabilities	Lease liability, net of current maturities		(1,020,769	)
Total operating lease liabilities		$	(1,437,174	)
Finance Leases
Right-of-use assets		$	41,827
Current liabilities	Lease liability, current maturities		(19,203	)
Non-current liabilities	Lease liability, net of current maturities		(21,463	)
Total finance lease liabilities		$	(40,666	)
Weighted Average Remaining Lease Term
Operating leases			3.94 years
Finance leases			2.11 years
Weighted Average Discount Rate
Operating leases			3	%
Finance leases			3	%

As the leases do not provide an implicit rate, the Company used an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments, which is reflective of the specific term of the leases and economic environment of each geographic region.  

Anticipated future lease costs, which are based in part on certain assumptions to approximate minimum annual rental commitments under non-cancelable leases, are as follows: 

Year Ending December 31,		Operating		Financing		Total
2021	$	226,806	$	10,080	$	236,886
2022		401,622		20,160		421,782
2023		330,300		11,760		342,060
2024		324,000		—		324,000
2025		243,000		—		243,000
Total lease payments		1,525,728		42,000		1,567,728
Less: Imputed interest		88,554		1,334		89,888
Present value of lease liabilities	$	1,437,174	$	40,666	$	1,477,840

Chicago Airport Testing has subleased its leased vacant area for a period of one year, the licensee has the option to terminate at any time after the first six months. The licensee elected to terminate the Agreement, subsequent to June 30, 2021.  The effective date of the termination is July 31, 2021 and the Company has $160,000 for the remaining lease revenue.