Quarterly report pursuant to Section 13 or 15(d)

OPERATING LEASES

v3.22.2.2
OPERATING LEASES
 6 Months Ended
Jun. 30, 2022
Operating Leases  
OPERATING LEASES

NOTE 8 – OPERATING LEASES

 

The Company has two operating lease agreements for its warehouse and office spaces both with a weighted average remaining lease terms at June 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:

 

   

Six Months
Ended

June 30, 2022

   

Six Months
Ended

June 30, 2021

  
Lease Cost                
Operating lease cost (of which $49 is included in general and administration and $301 is included in cost of sales in the Company’s statement of operations for the six months ended June 30, 2022, and for the same period in 2021, respectively)   $ 350     $ 350  
                 
Other Information                
Weighted average remaining lease term – operating leases (in years)     0.9       1.9  
Average discount rate – operating leases     3.75 %     3.75 %

 

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

 

      At
June 30, 2022		       At
June 30, 2021		  
Operating leases                
Long-term right-of-use assets, net of accumulated amortization of $2,237 and $1,586, respectively   $ 580     $ 1,242  
                 
Short-term operating lease liabilities   $ 588     $ 695  
Long-term operating lease liabilities     47       635  
Total operating lease liabilities   $ 635     $ 1,330  

 

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

 

Year Ending   Operating Leases  
2022 (remaining 6 months)     376  
2023     280  
Total lease payments     656  
Less: Imputed interest/present value discount     (21 )
Present value of lease liabilities   $ 635  

 

Rent expense for the six months ended June 30, 2022 and 2021 was $476 and $452, respectively.