Annual report pursuant to Section 13 and 15(d)

OPERATING LEASE LIABILITY

v3.22.1
OPERATING LEASE LIABILITY
12 Months Ended
Dec. 31, 2021
Disclosure Text Block [Abstract]  
Lessee, Operating Leases [Text Block]

NOTE 8 OPERATING LEASE LIABILITIES

 

The Company leases office space in eleven different locations with monthly payments ranging from $744 to $10,279 which expire at various dates through April 2025.

 

The Company's leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease.

 

The Company's weighted average remaining lease term and weighted average discount rate for operating leases as of December 31, 2021 and 2020 are as follows:

 

   

December 31, 2021

   

December 31, 2020

 

Weighted average remaining lease term

    2.46       2.93  

Weighted average discount rate

    4.77

%

    4.77

%

 

The following table reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total lease liabilities recognized on the consolidated balance sheet as of December 31, 2021:

 

2022

  $ 499,849  

2023

    356,844  

2024

    141,457  

2025

    20,510  

Total undiscounted future minimum lease payments

    1,018,660  

Less: Difference between undiscounted lease payments and discounted lease liabilities

    (53,670

)

Total operating lease liabilities

  $ 964,990  

Less current portion

    (465,813

)

Long-term operating lease liabilities

  $ 499,177  

 

Total rent expense under operating leases for the year ended December 31, 2021 was $616,849 as compared to $548,336 for the year ended December 31, 2020. Rent expense paid with cash was $628,657 for the year ended December 31, 2021, as compared to $552,613 for the year ended December 31, 2020.