| LEASES |
NOTE 6 — LEASES
We have finance and operating leases for our corporate office and certain
office and computer equipment. Our two operating leases have remaining lease terms of ten years and 6 months, respectively. On September
29, 2022, we extended our existing lease in Chester NY through March 31, 2023 with the same payment terms. Our finance lease, which was
entered into in June 2022 has a remaining lease term of 5 years.
The components of lease expense were as follows:
Schedule of components of lease expense
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Nine Months Ended |
|
| |
|
September 30, |
|
September 30, |
|
| |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating lease cost |
|
$ |
157,076 |
|
$ |
37,093 |
|
$ |
396,658 |
|
$ |
112,383 |
|
| Short-term lease cost |
|
|
18,300 |
|
|
35,960 |
|
|
96,588 |
|
|
104,396 |
|
| Total lease cost |
|
$ |
175,376 |
|
$ |
73,053 |
|
$ |
493,246 |
|
$ |
216,779 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance lease cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization of right-of-use assets |
|
$ |
17,754 |
|
$ |
597 |
|
$ |
23,672 |
|
$ |
2,188 |
|
| Interest on lease liabilities |
|
|
1,381 |
|
|
10 |
|
|
1,381 |
|
|
57 |
|
| Total finance lease cost |
|
$ |
19,135 |
|
$ |
607 |
|
$ |
25,053 |
|
$ |
2,245 |
|
Supplemental cash flow information related to leases was as follows:
Schedule of cash flow information related to leases
| |
|
|
|
|
|
|
| |
|
Nine Months Ended |
|
| |
|
September 30, |
|
| |
|
2022 |
|
2021 |
|
| Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|
| Operating cash flows from operating leases |
|
$ |
301,150 |
|
$ |
105,618 |
|
| Financing cash flows from finance leases |
|
|
26,443 |
|
|
2,232 |
|
Supplemental balance sheet information related to leases was as follows:
Schedule of balance sheet information related to leases
| |
|
September 30,
2022 |
|
December 31,
2021 |
|
| |
|
|
|
|
|
|
|
| Operating Leases |
|
|
|
|
|
|
|
| Operating lease right-of-use assets |
|
$ |
3,865,370 |
|
$ |
95,553 |
|
| |
|
|
|
|
|
|
|
| Operating lease current liabilities |
|
|
342,399 |
|
|
95,553 |
|
| Operating lease long term liabilities |
|
|
3,741,015 |
|
|
— |
|
| Total operating lease liabilities |
|
$ |
4,083,414 |
|
$ |
95,553 |
|
| |
|
|
|
|
|
|
|
| Finance Leases |
|
|
|
|
|
|
|
| Property and equipment, at cost |
|
$ |
355,071 |
|
$ |
12,725 |
|
| Accumulated depreciation |
|
|
23,671 |
|
|
(12,725 |
) |
| Property and equipment, net |
|
$ |
331,400 |
|
$ |
— |
|
| |
|
|
|
|
|
|
|
| Finance lease current liabilities |
|
|
64,467 |
|
|
— |
|
| Finance lease long term liabilities |
|
|
265,542 |
|
|
— |
|
| Total finance lease liabilities |
|
$ |
330,009 |
|
$ |
— |
|
| |
|
September 30,
2022 |
|
December 31,
2021 |
|
| |
|
|
|
|
|
| Weighted Average Remaining Lease Term |
|
|
|
|
|
| Operating leases |
|
10.1 Years |
|
0.6 Years |
|
| Finance leases |
|
4.9 Years |
|
0 Years |
|
| |
|
|
|
|
|
| Weighted Average Discount Rate |
|
|
|
|
|
| Operating leases |
|
4.02% |
|
4.75% |
|
| Finance leases |
|
4.25% |
|
4.75% |
|
Maturities of lease liabilities are as follows:
Schedule of maturities of lease liabilities
| Year Ending December 31, |
|
Operating Leases |
|
Finance Leases |
|
| 2022 (excluding the nine months ended September 30, 2022) |
|
|
124,876 |
|
|
19,832 |
|
| 2023 |
|
|
499,503 |
|
|
79,329 |
|
| 2024 |
|
|
499,503 |
|
|
79,329 |
|
| 2025 |
|
|
499,503 |
|
|
79,329 |
|
| 2026 |
|
|
499,503 |
|
|
79,329 |
|
| Thereafter |
|
|
2,830,519 |
|
|
33,052 |
|
| Total undiscounted lease payments |
|
|
4,953,407 |
|
|
370,200 |
|
| Less: imputed interest |
|
|
(869,993 |
) |
|
(40,191 |
) |
| Total lease liabilities |
|
$ |
4,083,414 |
|
$ |
330,009 |
|
|