Quarterly report pursuant to Section 13 or 15(d)

OPERATING LEASES

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OPERATING LEASES
 3 Months Ended
Mar. 31, 2022
Operating Leases  
OPERATING LEASES

NOTE 8 – OPERATING LEASES

 

The Company has two operating lease agreements for its warehouse and office spaces both with remaining lease terms at March 31, 2022 of 1.2 years.

 

 

The components of rent expense and supplemental cash flow information related to leases for the period are as follows:

 

   

Three Months
Ended

March 31, 2022

   

Three Months
Ended

March 31, 2021

  
Lease Cost                
Operating lease cost (of which $25 is included in general and administration and $150 is included in cost of sales in the Company’s statement of operations for the three months ended March 31, 2022, and $25 and $150 for the same period in 2021, respectively)   $ 175     $ 175  
                 
Other Information                
Weighted average remaining lease term – operating leases (in years)     1.2       2.2  
Average discount rate – operating leases     3.75 %     3.75 %

 

The supplemental balance sheet information related to leases for the period is as follows:

 

    At
March 31, 2022		     At
December 31, 2021		  
Operating leases                
Long-term right-of-use assets, net of accumulated amortization of $2,069 and $1,903, respectively   $ 748     $ 914  
                 
Short-term operating lease liabilities   $ 691     $ 721  
Long-term operating lease liabilities     123       268  
Total operating lease liabilities   $ 814     $ 989  

 

Maturities of the Company’s lease liabilities are as follows (in thousands):

 

Year Ending   Operating Leases  
2022 (remaining 9 months)     563  
2023     280  
Total lease payments     843  
Less: Imputed interest/present value discount     (29 )
Present value of lease liabilities   $ 814  

 

Rent expense for the three months ended March 31, 2022 and 2021 was $226 and $226, respectively.