Lease Liability

3 Months Ended

Mar. 31, 2022

Lease Liability

Lease Liability

8. Lease Liability

The Company has operating leases predominantly for operating facilities. As of March 31, 2022, the remaining lease terms on our operating leases range from less than one to five years. Renewal options to extend our leases have not been exercised due to uncertainty. Termination options are not reasonably certain of exercise by the Company. There is no transfer of title or option to purchase the leased assets upon expiration. There are no residual value guarantees or material restrictive covenants. There are no significant finance leases as of March 31, 2022.

Future minimum lease payments as of March 31, 2022, are as follows:

Maturity of Lease Liability:

	Totals
2022		513,000
2023		775,000
2024		54,000
2025		4,000
2026		2,000
2027		-
After		-
Total lease payments		1,348,000
Less: Imputed Interest		(26,000	)
Present value of remaining lease payments	$	1,322,000
Current	$	540,000
Noncurrent	$	782,000
Weighted-average remaining lease term (years)		3.5
Weighted-average discount rate		4.2	%

In March of 2022, Premier Packaging began leasing its relocated manufacturing facilities to West Henrietta, New York. This lease contains an escalating payment clause, ranging from $61,000 per month to $78,000 per month, over the twelve term of the lease.