Operating Lease Liabilities

12 Months Ended

Dec. 31, 2021

Disclosure Text Block [Abstract]

OPERATING LEASE LIABILITIES

Note 10. OPERATING LEASE LIABILITIES

The Company has operating and finance leases for leased office and manufacturing facilities and equipment leases. The Company leases certain machinery and equipment under finance leases and leases its offices and manufacturing facilities under operating leases. The leases have remaining lease terms of one to six years, some of which include options to extend or terminate the leases.

	December 31,			December 31,
	2021			2020
Weighted Average Remaining Lease Term - in years		4.53			5.53
Weighted Average discount rate - %		8.89	%		8.89	%

The aggregate undiscounted cash flows of operating lease payments, with remaining terms greater than one year are as follows:

	Amount
December 31, 2022	$	1,007,000
December 31, 2023		1,038,000
December 31, 2024		1,070,000
December 31, 2025		992,000
December 31, 2026		730,000
Total future minimum lease payments		4,837,000
Less: discount		(910,000	)
Total operating lease maturities		3,927,000
Less: current portion of operating lease liabilities		(686,000	)
Total long term portion of operating lease maturities	$	3,241,000

On April 29, 2021 the Company entered into an agreement to surrender possession of the premises of the former corporate office, located in Hauppauge, NY. The Company made a one-time payment of 40% of the remaining balance due to the landlord as of May 1, 2021, approximately $37,000. The Company had previously recognized a lease impairment of $275,000 to its Operating Lease Right-of-Use-Asset for the year-ended December 31, 2019.

NTW’s warehouse lease was terminated in May 2020 by its landlord under the terms of its lease agreement. Additionally, the Company entered into a new lease agreement for warehouse space in Bohemia, NY. The new lease term commenced on April 1, 2020 and expires on May 31, 2025. During the first year of the lease, the monthly rent is $10,964 and increases 3% each year thereafter. The final two months are equal installments of $1,746.

Rent expense for the years ended December 31, 2021 and 2020 was $1,069,000 and $1,173,000, respectively.