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Operating Lease
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
OPERATING LEASE

12. OPERATING LEASE

 

On September 12, 2019, we entered into a lease covering approximately 14,300 square feet of office and warehouse space with a Possession Date of November 15, 2019 and a Commencement Date of February 13, 2020. The property is located at 175 Industrial Way in Portland, which is a short distance from our headquarters and manufacturing facility at 56 Evergreen Drive. We renovated this space to meet our needs in expanding our production capacity for the First Defense® product line. The lease term is ten years with a right to renew for a second ten-year term and a right of first offer to purchase. At this time, we are not reasonably assured that we would exercise this renewal option in place of other real estate options. A 10-year period is reflected in the right-of-use (ROU) asset and lease liability on our balance sheet. The total lease liability over the initial 10-year term (including inflationary adjustments) aggregates approximately $1,313,698 and includes real estate and personal property taxes, utilities, insurance, maintenance and related building and operating expenses. Our lease includes variable lease and non-lease components that are included in the ROU asset and lease liability. Such payments primarily include common area maintenance charges and increases in rent payments that are driven by factors such as future changes in an index, such as the Consumer Price Index. As of December 31, 2020, the balance of the operating lease ROU asset was $1,220,361 and the operating lease liability was $1,235,681. The calculated amount of the ROU asset and lease liability is impacted by the length of the lease term and the discount rate used for the present value of the minimum lease payments. The following table represents lease costs and other lease information. As we elected not to separate lease and non-lease components for all classes of underlying assets, and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as real estate taxes and common area maintenance.

 

   During the Years Ended
December 31,		 
   2020   2019 
Lease cost        
Operating lease cost  $104,094    — 
Variable lease cost   36,523    — 
Total lease cost  $140,617    — 
           
Operating lease          
Weighted average remaining lease term (in years)   9.1    — 
Weighted average discount rate   4.77%   — 

  

Future lease payments required under non-cancelable operating leases in effect as of December 31, 2020 were as follows:

 

During the Years Ending December 31,

  Amount 
2021  $159,396 
2022   162,102 
2023   165,120 
2024   168,210 
2025   171,383 
Thereafter   734,304 
Total lease payments (undiscounted cash flows)   1,560,515 
Less: imputed interest (discount effect of cash flows)   (324,834)
Total operating lease liabilities  $1,235,681