LEASE OBLIGATIONS

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

LEASE OBLIGATIONS

NOTE 8 – LEASE OBLIGATIONS

The Company leases office and warehouse space under operating leases. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments under the lease. Operating lease, right-of-use assets, and liabilities are recognized at the lease commencement date based on the present value of lease payments over the reasonably certain lease term. The implicit rates with the Company’s operating leases are generally not determinable and the Company uses its incremental borrowing rate at the lease commencement date to determine the present value of its lease payments. The determination of the Company’s incremental borrowing rate requires judgement. The company determines its incremental borrowing rate for each lease using its then-current borrowing rate. Certain of the Company’s leases include options to extend or terminate the lease. The Company establishes the number of renewal options periods used in determining the operating lease term based upon its assessment at the inception of the operating lease. The option to renew the lease may be automatic, at the option of the Company, or mutually agreed to between the landlord and the Company. Once the facility lease term has begun, the present value of the aggregate future minimum lease payments is recorded as a right-of-use asset. Lease expense is recognized on a straight-line basis over the term of the lease.

	Year Ended
	December 31
	2021			2020
Operating lease costs	$	258,762		$	255,416
Short-term operating lease costs		6,003			9,959
Financing lease expense:
Amortization of right-of-use assets		7,786			5,184
Interest on lease liabilities		1,855			1,768
Total financing lease expense		9,641			6,952
Total lease expense	$	274,406		$	272,327
Right-of-use assets obtained in exchange for new operating lease liabilities	$	1,603		$	2,649,070
Right-of-use assets obtained in exchange for new financing lease liabilities	$	—		$	16,524
Weighted-average remaining lease term (years) - operating leases		13.1			14.1
Weighted-average remaining lease term (years) - financing leases		2.2			3.1
Weighted-average discount rate - operating leases		6.75	%		6.75	%
Weighted-average discount rate - financing leases		8.63	%		8.82	%

Maturities of lease liabilities as of December 31, 2021, were as follows:

	Operating leases		Finance leases
For the years ended December 31,
2022	$	285,159	$	9,641
2023		287,108		5,881
2024		287,108		2,929
2025		287,108		-
2026		287,108		-
Thereafter		2,312,301		-
Total minimum lease obligations		3,745,892		18,451
Less-amount representing interest		(1,261,008)		(1,563)
Present value of minimum lease obligations		2,484,884		16,888
Current maturities		(121,069)		(8,541)
Lease obligations, net of current maturities	$	2,363,815	$	8,347