XML 24 R14.htm IDEA: XBRL DOCUMENT v3.22.2.2
Operating Lease Obligations
9 Months Ended
Sep. 30, 2022
Operating Lease Obligations  
Operating Lease Obligations

Note 8 – Operating Lease Obligations

 

Effective July 2018, we entered into a lease agreement for the right to use and occupy office space. The lease term commenced July 1, 2018 and is scheduled to expire after 36 months, on June 30, 2021. In July 2021, we executed a two-year renewal at the same monthly amount. A three-year lease was signed in September 2022.

 

Effective November 2019, we entered into a new lease with Interport Logistics, LLC. The lease term commenced on November 11, 2019 and is scheduled to expire on November 11, 2022, at which point it became month-to-month.

 

Effective May 2019, we entered into a new lease in Mexico. The lease commenced May 1, 2019 and was renewed on April 1, 2022 for one year.

 

Effective January 2021, we entered into a lease agreement for the right to use and occupy office space. The lease term commenced January 18, 2021 and was extended for 18 months to July 31, 2023.

 

Effective January 2021, we entered into a lease agreement for the right to use and occupy office and manufacturing space. The lease term commenced January 1, 2021 and is scheduled to expire after 60 months, on December 31, 2025.

 

The following table presents the discounted present value of minimum lease payments for our office and warehouses to the amounts reported as financial lease liabilities on the condensed consolidated balance sheet at September 30, 2022:

 

         
Undiscounted Future Minimum Lease Payments     Operating Lease   
2022 (three months)     93,643  
2023     293,050  
2024     252,000  
2025     252,000  
Total     890,693  
Amount representing imputed interest     (62,457 )
Total Operating Lease Liability     828,236  
Current portion operating lease liability     290,789  
Operating lease liability, non-current     537,447  

 

 

The table below presents information for lease costs related to our operating leases at September 30, 2022

 

       
 Operating lease cost:        
Amortization of leased assets     543,865  
Interest of lease liabilities     93,630  
 Total operating lease cost     637,495  

 

The table below presents lease-related terms and discount rates at September 30, 2022

 

     
Summary of lease-related terms and discount rates   
Remaining term on leases   1 to 39 months 
Incremented borrowing rate   5.0%