LEASES

12 Months Ended

Dec. 31, 2021

INCOME TAXES

12. LEASES

12. LEASES

On January 1, 2021, Iconic. executed a cancellable Lease Agreement with Dan Kay International (an entity controlled by Richard DeCicco) for the lease of the Company’s office and warehouse space in North Amityville New York. The agreement has a term of three years from January 1, 2021 to January 1, 2024 and provides for monthly rent of $4,893.

On November 12, 2019, TopPop LLC executed a lease agreement with Plymouth 4 East Stow LLC to rent approximately 26,321 square feet of warehouse space in Marlton, NJ. The lease provided a term of five years commencing upon January 1, 2020 and terminating on December 31, 2024. The lease also provided for a monthly payment to Plymouth 4 East Stow LLC for common area use of $4,430 and a security deposit to the Landlord of $45,864.

Effective November 6, 2020, TopPop LLC executed a lease agreement with Warehouse4Biz LLC to rent approximately 14,758 square feet of warehouse space in Bellmawr, NJ. The lease provided a lease term of two years commencing upon December 1, 2020 and terminating on November 30, 2022. The lease provided a security deposit to Warehouse4Biz LLC of $20,734.

Effective May 19, 2021, TopPop LLC executed a lease agreement with Industrial Opportunities II LLC to rent approximately 63,347 square feet of warehouse space in Pennsauken, NJ. The lease provided a lease term of 76 months commencing upon September 1, 2021 and terminating on December 31, 2027. The lease provided a security deposit to Industrial Opportunities II LLC of $64,931.

At December 31, 2021, the future undiscounted minimum lease payments under the noncancellable leases are as follows:

	As of December 31, 2021
Year ending December 31, 2022	$	669,919
Year ending December 31, 2023		602,358
Year ending December 31, 2024		559,951
Year ending December 31, 2025		576,750
Year ending December 31, 2026		594,052
Thereafter		1,876,563
Total undiscounted finance lease payments		4,879,593
Less: Imputed interest		1,663,278
Present value of finance lease liabilities	$	3,216,315

The operating lease liabilities of $3,216,315 and $49,147 as of December 31, 2021 and December 31, 2020, respectively, represents the discounted (at a 10% estimated incremental borrowing rate) value of the future lease payments at December 31, 2021 and December 31, 2020. The Company’s weighted-average remaining lease term relating to its operating leases is 5.05 years.

For the years ended December 31, 2021 and 2020, occupancy expense attributed to these leases were $424,523 and $121,579, respectively.