Operating Leases

6 Months Ended

May 01, 2021

Note 7 Operating Leases

The Company leases the property for several Prestige retail sales centers from various unrelated entities under operating lease agreements expiring through December 2021. The Company also leases certain equipment under unrelated operating leases. These leases have varying renewal options. To offset expiring leases,

he Company purchased the land for the Ocala South retail sales center in March 2021 for $500,000

and

e Tavares retail sales center in January 2021 for $245,000.

Right of use assets are included as a

non-current

asset in the amount of $694,629, net of amortization in the consolidated Balance Sheet as of May 1, 2021.

Based on the terms of the lease agreements, all of the Company’s leases are classified as operating leases. The weighted average remaining lease term and weighted average discount rate of the operating leases is 8.65 years and 2.94%, respectively.

Minimum rental payments under operating leases are recognized on a straight-line basis over the term of the lease. Individual components of the total lease cost incurred by the Company in the amount of $98,162 for the six months ended May 1, 2021.

The amount of future minimum lease payments under operating leases are as follows:


	Operating Lease
Undiscounted future minimum lease payments:
2021 (6 months remaining)	$	31,776
2022		68,401
2023		74,322
2024		80,955
2025		88,388
Thereafter		458,175

Total		802,017
Amount representing imputed interest		(10,809	)

Total operating lease liability		791,208
Current portion of operating lease liability		30,078

Operating lease liability, non-current	$	761,130