Leases

9 Months Ended

Sep. 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 million right of use asset and a $0.5 million lease liabilities.

At September 30, 2021 and December 31, 2020, the Company had operating lease liabilities of $0.6 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 nine months ended September 30, 2021 and September 30, 2020 are as follows:


	Three Months Ended September 30,
	2021		2020
Operating lease expense	$	79,809	$	23,250
Short-term lease rent expense		10,349		23,221
	$	90,158	$	46,471


	Nine Months Ended September 30,
	2021		2020
Operating lease expense	$	220,618	$	66,250
Short-term lease rent expense		30,400		61,420
	$	251,018	$	127,670

The weighted-average remaining lease term as of September 30, 2021 was 2.6 years. The weighted-average discount rate was 6%.

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


	Nine Months Ended
	September 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	220,618


	Nine Months Ended
	September 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	66,250

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

Lease Maturity


	As of September 30, 2021
2021 (excluding the nine months ended September 30, 2021)	$	79,809
2022		297,366
2023		227,945
2024		51,843
2025		—
Thereafter		—
Total future minimum lease payments	$	656,963
Less imputed interest		(29,225)
Total	$	627,738