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Leases
 9 Months Ended
Sep. 30, 2022
Leases  
Leases

Note 10 – Leases

 

The components of lease expense were as follows (amounts in thousands):

 

   2022   2021   2022   2021 
  

Three months ended

September 30,

   Nine months ended
September 30,		 
   2022   2021   2022   2021 
Operating lease cost  $122   $121   $368   $353 
Finance lease cost                    
Amortization of assets   2    2    7    7 
Interest on finance lease obligations   1    1    2    3 
Variable lease cost   -    -    -    - 
Total net lease cost  $125   $124   $377   $363 

 

Included in the table above, for the three and nine months ended September 30, 2022, is $0.1 million and $0.3 million, respectively, of operating lease cost for our corporate headquarters. For the three and nine months ended September 30, 2021, is $0.1 and $0.3 million, respectively, of operating lease costs 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.

 

Supplemental balance sheet information related to leases was as follows (amounts in thousands):

 

Operating leases:  Related Party   Other   Total   Related Party   Other   Total 
   September 30, 2022   December 31, 2021 
Operating leases:  Related Party   Other   Total   Related Party   Other   Total 
Operating lease ROU assets  $              2,419   $219   $2,638   $             2,568   $230   $2,798 
                               
Current operating lease liabilities  $218   $117   $335   $201   $112   $313 
Noncurrent operating lease liabilities   2,714    118    2,832    2,880    140    3,020 
Total operating lease liabilities  $2,932   $235   $3,167   $3,081   $252   $3,333 

 

Finance leases:  September 30, 2022   December 31, 2021 
Property and equipment, at cost  $51   $51 
Accumulated amortization   (33)   (26)
Property and equipment, net  $18   $25 
           
Current obligations of finance leases  $10   $13 
Finance leases, net of current obligations   12    19 
Total finance lease liabilities  $22   $32 
           
Weighted average remaining lease term (in years):          
Operating leases   8.4    9.1 
Finance leases   2.6    3.1 
           
Weighted average discount rate:          
Operating leases   5.8%   5.7%
Finance leases   9.9%   11.5%

 

Supplemental cash flow and other information related to leases was as follows (amounts in thousands):

 

   2022   2021   2022   2021 
   Three months ended
September 30,		   Nine months ended
September 30,		 
   2022   2021   2022   2021 
Cash paid for amounts included in the measurement of lease liabilities:                    
Operating cash flows from operating leases  $127   $120   $378   $350 
Operating cash flows from finance leases  $1   $1   $2   $3 
Financing cash flows from finance leases  $3   $2   $9   $7 
                     
ROU assets obtained in exchange for lease liabilities:                    
Operating leases  $3,108   $3,057   $3,108   $3,057 

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

 

Maturities of lease liabilities were as follows (amounts in thousands):

 

Years Ending December 31st,  Operating Leases   Finance Leases 
2022 (three remaining months)  $126   $4 
2023   507    10 
2024   446    5 
2025   435    5 
2026   430    - 
Thereafter   2,078    - 
Total lease payments   4,022    24 
Less amount representing interest   (855)   (2)
Total lease obligations   3,167    22 
Less current portion   (335)   (10)
Long-term lease obligations  $2,832   $12