Lessee Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Lessee Leases

Note 5 – Lessee Leases

Our operating leases are comprised of office space and office equipment leases. Fleet and vehicle leases entered into prior to January 1, 2019, under ASC 840 guidelines, have 4 year terms and are classified as operating leases. Fleet leases entered into beginning January 1, 2019, under ASC 842 guidelines, are expected to be extended to 5 year terms and are classified as finance leases.

Gross right of use assets recorded under finance leases related to WCI vehicle fleet leases were $882,081 and $406,242 as of December 31, 2021 and 2020, respectively. Accumulated amortization associated with finance leases was $236,470 and $110,164 as of December 31, 2021 and 2020, respectively.

Mentor Capital, Inc.

Notes to Consolidated Financial Statements

December 31, 2021 and 2020

Lease costs recognized in our consolidated income statements is summarized as follows:

	Year Ended December 31, 2021		Year Ended December 31, 2020
Operating lease cost included in cost of goods	$	100,222	$	155,456
Operating lease cost included in operating costs		47,287		57,363
Total operating lease cost (1)		147,509		212,819
Finance lease cost, included in cost of goods:
Amortization of lease assets		151,200		73,524
Interest on lease liabilities		24,719		18,184
Total finance lease cost		175,919		91,708
Short-term lease cost		-		23,920
Total lease cost	$	323,428	$	328,447

Right of use asset amortization under operating agreements was $146,068 and $194,957 for the years ended December 31, 2021 and 2020.

Other information about lease amounts recognized in our consolidated financial statements is summarized as follows:

	December 31, 2021			December 31, 2020
Weighted-average remaining lease term – operating leases		0.95 years			0.93 years
Weighted-average remaining lease term – finance leases		3.83 years			3.41 years
Weighted-average discount rate – operating leases		5.7	%		10.1	%
Weighted-average discount rate – finance leases		3.8	%		8.3	%

Finance lease liabilities were as follows:

	December 31, 2021			December 31, 2020
Gross finance lease liabilities	$	634,192		$	310,685
Less: imputed interest		(51,212	)		(40,183	)
Present value of finance lease liabilities		582,980			270,502
Less: current portion		(167,515	)		(79,526	)
Long-term finance lease liabilities	$	415,465		$	190,976

Operating lease liabilities were as follows:

	December 31, 2021			December 31, 2020
Gross operating lease liabilities	$	55,865		$	146,171
Less: imputed interest		(8,832	)		(6,863	)
Present value of operating lease liabilities		47,033			139,308
Less: current portion		(42,058	)		(123,158	)
Long-term operating lease liabilities	$	4,975		$	16,150

Lease maturities are disclosed in Note 14.

Mentor Capital, Inc.

Notes to Consolidated Financial Statements

December 31, 2021 and 2020