Leases

12 Months Ended

Dec. 31, 2021

Note 7- Leases

The Company leases facilities under agreements classified as operating leases that expire in 2023, 2024 and 2026. 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 $0.2 million right of use asset and a $0.2 million lease liabilities.

During the year ended December 31, 2021, the Company entered into three new lease agreements, with interest rates ranging from 4% to 7%. Monthly payments for the new leases range from $488 to $4,950. Total rent payments made on new leases during the year ended December 31, 2021 totaled $68,035. The lease agreements are for machinery, equipment, and office space.

At December 31, 2021 and 2020, the Company had operating lease liabilities of $0.6 million and $0.3 million, respectively, and right of use assets of $0.5 million and $0.3 million, respectively.

Lease expenses during the year ended December 31, 2021 and 2020 are as follows:


	Year Ended December 31,
	2021		2020
Operating lease expense	$	292,095	$	89,500
Short-term lease rent expense		68,517		78,574
	$	360,612	$	168,074

The weighted-average remaining lease term as of December 31, 2021 was 3.7 years. The weighted-average discount rate was 6%.

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

Lease Maturity

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


2022	$	292,852
2023		251,584
2024		55,176
Thereafter		—
Total future minimum lease payments	$	599,612
Less imputed interest		(37,978)
Total		561,634
Less: current portion of lease liabilities		(292,852)
Lease liabilities, net of current portion	$	268,782

Year Ended December 31,

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows from operating leases