Leases

6 Months Ended

Jun. 30, 2021

Note 7- Leases

The Company leases facilities under agreements classified as operating leases that expire in 2022, 2023 and 2024. The Company’s leases include renewal options; however, renewal options have not been included in the calculation of the lease liabilities and right of use assets as the Company is not reasonably certain to exercise the options. Leases with an initial term of 12 months or less are not recorded on the balance sheet and expense is recognized on a straight-line basis over the lease term. The Company does not act as a lessor or have any leases classified as financing leases.

In connection with the ANC-Zodega Subsidiaries acquisitions, as described in Note 1, the Company assumed lease agreements with third party vendors. The leases resulted in a $0.5 right of use asset and a $0.5 lease liabilities.

At June 30, 2021 and December 31, 2020, the Company had operating lease liabilities of $0.7 million and $0.3 million, respectively, and right of use assets of $0.6 million and $0.3 million, respectively.

Lease expenses during the three and six months ended June 30, 2021 and June 30, 2020 are as follows:


	Three months ended June 30,
	2021		2020
Operating lease expense	$	76,169	$	23,250
Short-term lease rent expense		15,125		18,225
	$	91,294	$	41,475


	Six Months Ended June 30,
	2021		2020
Operating lease expense	$	130,865	$	43,000
Short-term lease rent expense		29,560		38,199
	$	160,425	$	81,199

The weighted-average remaining lease term as of June 30, 2021 was 2.7 years. The weighted-average discount rate was 6%.

Supplemental cash flow information related to the Company’s leases is as follows


	Six Months Ended
	June 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	130,865


	Six months ended
	June 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	43,000

The Company's future maturity of its operating lease liability is as follows:

Lease Maturity


	As of June 30, 2021
2021 (excluding the six months ended June 30, 2021)	$	167,727
2022		282,805
2023		217,736
2024		50,867
2025		—
Thereafter		—
Total future minimum lease payments	$	719,135
Less imputed interest		(60,677)
Total	$	658,458