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LEASE REVENUES
3 Months Ended
Mar. 31, 2021
Disclosure Text Block [Abstract]  
Lessor, Operating Leases [Text Block]

NOTE 8. LEASE REVENUES


The Company’s QVH unit rentals are governed by agreements that detail the lease terms and conditions. The determination of whether these contracts with customers contain a lease generally does not require significant judgement. The Company accounts for these rentals as operating leases. These leases do not include material amounts of variable payments and the Company has made the accounting policy election to exclude all taxes assessed by a governmental authority. The Company provides an option of the lessee to purchase the rented equipment upon the termination of the lease for the as then fair market value; however, the Company has not generated material revenue from sales of equipment under such options. Initial lease terms vary in length based upon customer needs and generally range from twelve to thirty-six months. Customer have the option to keep equipment on rent beyond the initial lease term on a one-year successive term that auto renews unless canceled by the customer. All of the Company’s rental products have long useful lives relative to the typical rental term with the original investment typically recovered in approximately five years. The rental products are typically rented for a majority of the time owned and a significant portion of the original investment is recovered when sold from inventory. The Company’s lease agreements do not contain residual value guarantees or restrictive covenants.


All of the Company’s outstanding lease contracts as of March 31, 2021, are scheduled to mature in 2021 with expected operating lease payments to be received totaling approximately $40,000.


Included in property and equipment, net, as of March 31, 2021 and December 31, 2020 is equipment available for rent in the amount of $7,354 and $10,959, respectively.