Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.22.1
LEASES
9 Months Ended
Sep. 30, 2021
LEASES  
NOTE 5 - LEASES

NOTE 5 – LEASES

 

On December 17, 2020, the Company entered into a 25 ½ month lease agreement for a 2,700-square-foot facility that contains office, warehouse, lab and R&D space in Fort Myers, Florida. The lease agreement commenced on December 17, 2020 and ends on January 31, 2023. The agreement provided for a total rent of $54,993 over the period. Occupancy of the property commenced on December 17, 2020, there was a 6-week rent holiday and a commencement date of February 1, 2021. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Rent is $3,291 per month from January 15, 2021, to January 31, 2022 and $1,154 from February 1, 2022 to January 31, 2023.

 

The balances for our operating lease where we are the lessee are presented as follows within our condensed consolidated balance sheet:

Operating leases:

 

Assets:

 

September 30,

2021

 

 

December 31,

2020

 

 

 

(Unaudited)

 

 

 

Operating lease right-of-use asset

 

$ 33,107

 

 

$ 49,364

 

Liabilities:

 

 

 

 

 

 

 

 

Current Portion of Long-Term Operating Lease

 

$ 21,064

 

 

$ 29,172

 

Long-Term Operating Lease, Net of Current Portion

 

 

3,400

 

 

 

15,178

 

 

 

$ 24,464

 

 

$ 44,350

 

 

The components of lease expense are as follows within our condensed consolidated statement of operations:

 

 

 

For the

 

 

For the

 

 

 

Nine months

 

 

Nine months

 

 

 

September 30,

2021

 

 

June 30,

2020

 

Operating lease expense

 

$ 19,409

 

 

$ -

 

 

Other information related to leases where we are the lessee is as follows:

 

 

 

For the

 

 

For the

 

 

 

Nine months

 

 

Year ended

 

 

 

September 30,

2021

 

 

December 31,

2020

 

Weighted-average remaining lease term:

 

 

 

 

 

Operating leases

 

1.33 Years

 

 

2.08 Years

 

 

 

 

 

 

 

 

Discount rate:

 

 

 

 

 

 

Operating leases

 

 

11.00 %

 

 

11.00 %

 

Supplemental cash flow information related to leases where we are the lessee is as follows:

 

 

 

For the

 

 

 

Nine months

 

 

 

September 30,

2021

 

Cash paid for amounts included in the measurement of lease liabilities:

 

$ 29,619

 

 

As of September 30, 2021, the maturities of our operating lease liability are as follows:

 

Year Ended:

 

Operating Lease

 

December 31, 2021

 

$ 9,874

 

December 31, 2022

 

 

15,989

 

Total minimum lease payments

 

 

25,863

 

Less: Interest

 

 

1,399

 

Present value of lease obligations

 

 

24,464

 

Less: Current portion

 

 

21,064

 

Long-term portion of lease obligations

 

$ 3,400