Quarterly report pursuant to Section 13 or 15(d)

Operating Lease Assets

v3.21.1
Operating Lease Assets
3 Months Ended
Mar. 31, 2021
Operating Lease Assets [Abstract]  
Operating Lease Assets

5. Operating Lease Assets



The Company entered into a lease agreement on February 1, 2021 for 8,898 square feet, for its office facilities in Chandler, AZ through January 2027. Monthly rental payments, excluding common area maintenance charges, are $25,953 to $28,733.  The first twelve months of the lease includes a 50% abatement period and a deposit for $110,000 was required. As of March 31, 2021, we have an operating lease asset balance for this lease of $1,317,604 and an operating lease liability balance for this lease of $1,448,956 recorded in accordance with ASC 842.  The lessor contributed $110,000 towards the purchase of office furniture as part of the lease agreement.

 

The following are additional details related to leases recorded on our balance sheet as of March 31, 2021:

 





 

 

 

 



 

 

 

 



 

 

 

 

Leases

Classification

 

Balance at

March 31,

2021

Assets

 

 

 

 

Current

 

 

 

 

     Operating lease assets

Operating lease assets

 

$

218,161 

Noncurrent

 

 

 

 

     Operating lease assets

Noncurrent operating lease assets

 

$

1,132,317 

Total lease assets

 

 

$

1,350,478 



 

 

 

 

Liabilities

 

 

 

 

Current

 

 

 

 

     Operating lease liabilities

    Operating lease liabilities

 

$

125,670 

Noncurrent

 

 

 

 

     Operating lease liabilities

Noncurrent operating lease liabilities

 

$

1,365,431 

Total lease liabilities

 

 

$

1,491,101 



The maturity analysis below summarizes the remaining future undiscounted cash flows for our operating leases, a reconciliation to operating lease liabilities reported on the Condensed Consolidated Balance Sheet, our weighted-average remaining lease term and weighted average discount rate:

 







 

 

 



 

 

 



 

 

 

Year ending December 31,

 

Amount

2021

 

$

147,125 

2022

 

 

318,055 

2023

 

 

324,221 

2024

 

 

330,894 

2025

 

 

337,568 

Thereafter

 

 

372,974 

   Total future lease payments

 

 

1,830,837 

   Less: imputed interest

 

 

(339,736)

Total

 

$

1,491,101 







 

 



 

 

Weighted Average Remaining Lease Term (years)

 

 

   Operating leases

 

5.6 



 

 

Weighted Average Discount Rate

 

 

   Operating leases

 

6.75%