XML 27 R17.htm IDEA: XBRL DOCUMENT v3.21.2
LEASES
6 Months Ended
Jun. 30, 2021
LEASES  
LEASES

11.  LEASES

The Company has operating leases for a warehouse and equipment. The leases have a remaining lease term of less than one year. The Company currently has no finance leases. The ROU asset is determined based on the lease liability adjusted for lease incentives received. Lease expense is recognized on a straight-line basis over the lease term. The leases may include various expenses incidental to the use of the property, such as common area maintenance, property taxes and insurance. These costs are separate from the minimum rent payment and are not considered in the determination of the lease liability and ROU asset. The Company has not noted any material instances in its leases where these costs were combined with the minimum rent payment and has therefore elected the policy to not separate lease from non-lease components if they are combined with the minimum rent payment. The option periods are not included in the determination of the lease liability and right-of-use asset as the Company is not reasonably certain if it will extend at the time of lease commencement.

The operating lease cost component of the lease expense was $25,807 for the six-month period ended June 30, 2021. The cash paid for amounts included in the measurement of lease liabilities as a component of cash flows related to leases was $25,807 for the six months ended June 30, 2021.  The operating lease cost component of the lease expense was $40,768 for the six-month period ended June 30, 2020.  The cash paid for amounts included in the measurement of lease liabilities as a component of cash flows related to leases was $40,768 for the six months ended June 30, 2020.

Assets and liabilities associated with these leases included in the Condensed Balance Sheets are as follows:

    

June 30, 2021

    

December 31, 2020

OPERATING LEASES

 

  

 

  

Other assets

$

13,086

$

38,892

Other accrued liabilities

$

13,086

$

38,892

Other long-term liabilities

 

 

Total operating lease liabilities

$

13,086

$

38,892

The weighted average remaining lease term is 3 months and the weighted average discount rate is 3.75%.

Future minimum payments under non-cancelable operating leases and financing leases consist of the following at June 30, 2021:

Quarter ending June 30, 2021

    

$

13,168

Less imputed interest

 

(82)

Total

$

13,086