FINANCE LEASES

9 Months Ended

Sep. 30, 2022

FINANCE LEASES

FINANCE LEASES

NOTE 5 – FINANCE LEASES

During 2019 and 2020, the Company borrowed an aggregate $9,985 and $7,357 under the following third-party and related party finance lease transactions:

☐	A $9,985 note from a third party for the lease of fixed assets, bearing interest at 22%, amortized over 24 months with a payment of $498 in additional to a $22 management fee for a total monthly payment of $520. The lease has a bargain purchase option of $1 at the end of the lease term.
	The following is a schedule of the net book value of the finance lease.

Assets	Sept. 30, 2022
Leased equipment under finance lease,	$	96,669
less accumulated amortization		(96,669	)
Net	$	-

Liabilities	Sept. 30, 2022
Obligations under finance lease (current)	$	4,697
Obligations under finance lease (noncurrent)		521
Total	$	5,218

Below is a reconciliation of leases to the financial statements.

	Finance Leases
Leased asset balance	$	4,980
Liability balance		5,218
Cash flow (operating)		-
Cash flow (financing)		-
Interest expense	$	238

The following is a schedule, by years, of future minimum lease payments required under finance leases.

Years ended December 31	Finance Leases
2022		5,125
2023		2,898
Thereafter		-
Total		7,993
Less: Imputed Interest	( )
Total Liability

Other information related to leases is as follows:

Lease Type	Weighted Average Remaining Term	Weighted Average Discount Rate (1)
Finance Leases	0.51 years		16	%

Based on average interest rate of 16%, average term remaining (months) 13.67 Average term remain (years) 1.24.

(1) This discount rate is consistent with our borrowing rates from various lenders.