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Notes Payable and Lease Obligations

12 Months Ended

Dec. 31, 2019

Notes Payable and Lease Obligations [Abstract]

Notes Payable and Lease Obligations

Note 9 - Notes Payable and Lease Obligations

Equipment Note

		December 31, 2019				December 31, 2018
Vehicle note		$	—			$	42,393
Less current portion of notes payable and other long-term debt			—				(10,173	)
Notes payable and other long-term debt		$	—			$	32,220

In September 2017, we entered into a note payable of $54,165 for the purchase of a vehicle. Interest and principal payments are due in equal monthly installments of $1,087 over five years beginning October 2017. This note bears an interest rate of 7.44% per annum and is fully secured by the vehicle.  The Company paid the balance of the note in full during 2019.

Unison Revolving Line of Credit

The Company has a revolving line of credit (“LOC”) agreement which matures on April 12, 2020.  The LOC provides for $75,080 in working capital. The interest rate is at the Wall Street Journal prime rate plus 1.50% and is adjusted daily.  Principal and interest are payable upon demand, but if demand is not made, then annual payments of accrued interest only are due, with the principal balance due upon maturity.  As of December 31, 2019 and 2018, the effective interest rate was 6.25% and 7.0%, respectively.  The LOC is collateralized by all the business assets of ICS.  As of December 31, 2019 and 2018, there were no amounts outstanding under this LOC.

Lease Obligations

We have operating and finance leases for corporate offices, other regional offices, and certain equipment. Our leases have remaining lease terms of 1 year to 15 years, some of which include multiple options to extend the leases for up to 5 years each.

The components of lease expense were as follows:

		Year ended December 31, 2019
Operating lease cost		$	469,231
Finance lease cost
Amortization of assets			8,406
Interest on finance lease obligations			7,298
Variable lease cost			—
Total net lease cost		$	484,935

Included in the table above, is approximately $339,500 for the year ended December 31, 2019, respectively, of operating lease cost for our corporate headquarters. This space is being leased from The Move, LLC. Our CEO and President, each a related party to WFCF, have a 24.3% jointly-held ownership interest in The Move, LLC.

Rent and lease expense for the years ended December 31, 2019 and 2018 was $614,300 and $548,300, respectively.

Supplemental balance sheet information related to leases was as follows: 

		December 31, 2019
Operating leases:		Related Party				Other				Total
Right of use asset		$	2,932,803			$	314,433			$	3,247,236
Current operating lease liabilities			158,306				81,213				239,519
Noncurrent operating lease liabilities			3,259,509				265,954				3,525,462
Total operating lease liabilities		$	3,417,815			$	347,167			$	3,764,981

Finance leases:		December 31, 2019
Right of use asset, at cost		$	43,041
Accumulated amortization			(21,934	)
Right of use asset, net		$	21,107
Current obligations of finance leases		$	8,317
Finance leases, net of current obligations			21,405
Total finance lease liabilities		$	29,722
Weighted average remaining lease term (in years):
Operating leases			11.0
Finance leases			3.0
Weighted average discount rate:
Operating leases			5.8	%
Finance leases			20.8	%

Supplemental cash flow and other information related to leases was as follows:

		Year ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	430,359
Operating cash flows from finance leases		$	7,298
Financing cash flows from finance leases		$	6,634
Right of use assets obtained in exchange for lease liabilities:
Operating leases		$	3,513,347

Maturities of lease liabilities were as follows:

Years Ending December 31st,			Operating Leases				Finance Leases
2020			$	448,992			$	13,597
2021				461,657				12,355
2022				465,759				10,051
2023				461,310				4,514
2024				407,133				—
Thereafter				2,901,022				—
Total lease payments				5,145,873				40,517
Less amount representing interest				(1,380,892	)			(10,795	)
Total lease obligations				3,764,981				29,722
Less current portion				(239,519	)			(8,317	)
Long-term lease obligations			$	3,525,462			$	21,405

X

- Definition

The entire disclosure for debt and capital lease obligations can be reported. Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Also includes descriptions and amounts of capital leasing arrangements that consist of direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 840
-URI http://asc.fasb.org/topic&trid=2208923

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

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X

- Definition

Notes Payable And Lease Obligations

+ References

No definition available.

+ Details

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