|
NOTE
9 – OPERATING LEASES
The
Company has two operating lease agreements for its warehouse and office spaces both with a weighted average remaining lease terms at
September 30, 2022 of approximately one year.
The
components of rent expense and supplemental cash flow information related to leases for the period are as follows:
SCHEDULE OF RENT EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION
| |
|
Nine Months Ended September 30, 2022
|
|
|
Nine Months Ended September 30, 2021
|
|
| Operating lease cost (of which $147 is included in general and administration and $902 is included in cost of sales in the Company’s statement of operations for the nine months ended September 30, 2022, and for the same period in 2021, respectively) |
|
$ |
525 |
|
|
$ |
525 |
|
| Lease Cost |
|
|
|
|
|
|
|
|
| Operating lease cost (of which $147 is included in general and administration and $902 is included in cost of sales in the Company’s statement of operations for the nine months ended September 30, 2022, and for the same period in 2021, respectively) |
|
$ |
525 |
|
|
$ |
525 |
|
| |
|
|
|
|
|
|
|
|
| Other Information |
|
|
|
|
|
|
|
|
| Weighted average remaining lease term – operating leases (in years) |
|
|
0.7 |
|
|
|
1.7 |
|
| Average discount rate – operating leases |
|
|
3.75 |
% |
|
|
3.75 |
% |
The
supplemental balance sheet information related to leases for the period is as follows:
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION
| |
|
At September 30, 2022
|
|
|
At September 30, 2021
|
|
| Operating leases |
|
|
|
|
|
|
|
|
| Long-term right-of-use assets, net of accumulated amortization of $2,406 and $1,749, respectively |
|
$ |
411 |
|
|
$ |
1,079 |
|
| |
|
|
|
|
|
|
|
|
| Short-term operating lease liabilities |
|
$ |
453 |
|
|
$ |
708 |
|
| Long-term operating lease liabilities |
|
|
— |
|
|
|
454 |
|
| Total operating lease liabilities |
|
$ |
453 |
|
|
$ |
1,162 |
|
Maturities
of the Company’s lease liabilities are as follows (in thousands):
SCHEDULE OF MATURITIES OF LEASE LIABILITIES
| Year Ending |
|
Operating Leases |
|
| 2022 (remaining 3 months) |
|
|
189 |
|
| 2023 |
|
|
280 |
|
| Total lease payments |
|
|
469 |
|
| Less: Imputed interest/present value discount |
|
|
(16 |
) |
| Present value of lease liabilities |
|
$ |
453 |
|
Rent
expense for the nine months ended September 30, 2022 and 2021 was $726 and $678, respectively.
|