Note 9 - Operating Leases

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note

9.

Operating Leases

The Company leases approximately

10,535

square feet of office space for its San Antonio, TX executive offices and operations. Rental expense under the operating lease was

$136,713

 and

$199,702

 for the years ended

December 31, 2020

and

2019

, respectively. The lease expires on

July 31, 2024.

The Company leases approximately

3,794

square feet of office space for its Nashville, Tennessee sales offices and operations. Rental expense under the operating lease was

$81,474

 and

$112,108

 for the years ended

December 31, 2020

and

2019

, respectively. The lease expires on

April 30, 2023.

The Company assumed a lease in San Antonio, Texas as a part of the Information Management Solutions, LLC acquisition for its Output Solutions employees and warehouse operations.  The lease has a remaining life of

45

 months and expires on

September 30, 2024.

The space leased is

22,400

 square feet. Annual rents during the lease term range from

$123,554

 to

$133,703.

 

On

January 1, 2021,

the Company entered into a lease in Austin, Texas commencing on

January 1, 2021 

for its Austin technology organization. The lease is for a period of

25

 months and expires on

January 31, 2023.

The space leased is

1,890

 square feet. Annual rents during the lease term is 

$55,755.

 

On

March 15, 2021,

the Company entered into a lease amendment to the existing lease in San Antonio, Texas commencing

April 1, 2021

and expiring on

September 30, 2024

running concurrently with the existing lease.   The incremental space leased is

2,734

square feet.   The incremental annual rent during the lease term ranges from

$56,047

to

$60,148.

The Company also leased select computer equipment for a period of

36

months beginning in

May, 2016.

The lease expired in

April, 2019.

Additionally, the Company has various copier equipment with leases that have

not

expired. Rental expense under the operating lease was

$12,729

 and

$25,000

 for the years ended

December 31, 2020

and

2019

, respectively.

The weighted average remaining lease term is

6.86

 years. The weighted average discount rate is

4.52%

The Company recognized total operating lease expense of approximately

$360,000

 and

$450,000

 for the years ended

December 31, 2020

and

2019

, respectively. In

2020

, the operating lease expense of

$360,000

 consisted of

$245,000

 of fixed operating expense and

$115,000

 of interest expense.

The maturities of lease liabilities are as follows at

December 31, 2020

:

Year ended December 31,
2021	$	349,913
2022		479,023
2023		488,802
2024		447,645
2025		353,990
Thereafter		1,112,689
Total minimum lease payments		3,232,062
Less imputed interest		(389,266	)
Total lease liabilities	$	2,842,796