Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

Note 4 – Leases

The Company has one operating lease and two finance leases.

Under the operating lease, the Company leases its executive offices and warehouse facilities in Fort Lauderdale, Florida from an entity controlled by Peter G. Dornau, the Company’s Chairman, President and Chief Executive Officer. The lease, as extended, expires on December 31, 2023. The lease requires an annual minimum base rent of $94,800 and provides for a maximum annual 2% increase in subsequent years, although the entity has not raised the minimum base rent since the Company entered into a previous lease agreement in 1998. Additionally, the leasing entity is entitled to reimbursement of all taxes, assessments, and any other expenses that arise from ownership. Each of the parties to the lease has agreed to review the terms of the lease every three years at the request of the other party. Operating lease expense was approximately $97,000 and $98,000 for the years ended December 31, 2021 and 2020, respectively. At December 31, 2021 and 2020, the Company had a right to use asset and a corresponding liability of $182,543 and $268,920, respectively related to the operating lease. Set forth below is a schedule of future minimum rent payments under the operating lease.

Years ending December 31,
2022	$	94,800
2023		94,800
Total future minimum lease payments		189,600
Less imputed interest		(7,057	)
Total operating lease liability	$	182,543

The Company’s two finance leases relate to office equipment. See Note 3 for information regarding the Company’s finance lease right to use assets and Note 8 for information regarding the finance lease payment schedule.

Costs incurred with respect to the Company’s leases during 2021 and 2020 are set forth below.

	2021		2020
Operating lease expense	$	97,356	$	98,086
Finance lease amortization		21,161		22,167
Finance lease interest		1,589		1,137
Total lease expense	$	120,106	$	121,390

The remaining lease term with respect to the operating lease, weighted average remaining lease term with respect to the finance leases and discount rate with respect to the operating lease and finance leases at December 31, 2021 and 2020 are set forth below:

	December 31, 2021
Remaining lease term – operating lease		2.0 years
Weighted average remaining lease term – finance leases		3.7 years
Discount rate – operating lease		3.7	%
Weighted average discount rate – finance leases		1.8	%

	December 31, 2020
Remaining lease term – operating lease		3.0 years
Weighted average remaining lease term – finance leases		4.6 years
Discount rate – operating lease		3.7	%
Weighted average discount rate – finance leases		1.8	%