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Note 4 - Leases

12 Months Ended

Dec. 31, 2020

Lessee, Operating and Finance Leases [Text Block]

NOTE 4 - LEASES

The Company leases certain vehicles, real property, production equipment and office equipment under lease agreements. The Company evaluates each lease to determine its appropriate classification as an operating lease or finance lease for financial reporting purposes. The majority of our operating leases are non-cancelable operating leases for production and office space in Hobro, Aarhus and Copenhagen, Denmark as well as in White Bear Lake, Minnesota. The lease in White Bear Lake will expire in February 2021 and due to the closure of the activity in North America, the lease has not been extended.

During the year ended December 31, 2020, cash paid for amounts included for the measurement of operating lease liabilities was $1,113,504, and the Company recorded operating lease expenses included in operating expenses of $1,290,362.

During the year ended December 31, 2020, cash paid for amounts included for the measurement of finance lease liabilities was $43,770, and the Company recorded operating lease expenses included in other income (expenses) of $114,792.

Supplemental balance sheet information related to leases as of December 31, 2020 and 2019 was as follows:

	December 31, 2020			December 31, 2019
Operating leases:
Operating lease right-of-use assets	$	4,947,734		$	5,053,614

Operating lease liabilities – current	$	1,026,235		$	999,685
Operating lease liabilities – long-term		4,159,225			4,141,855
Total operating lease liabilities	$	5,185,460		$	5,141,540

Finance leases:
Property and equipment, at cost	$	4,819,201		$	1,362,272
Accumulated depreciation		(1,389,488	)		(1,156,145	)
Property and equipment, net	$	3,429,713		$	206,127

Finance lease liabilities - current	$	394,839		$	34,772
Finance lease liabilities – long-term		3,112,496			172,273
Total finance lease liabilities	$	3,507,335		$	207,045

Weighted average remaining lease term:
Operating leases		10.0			10.2
Finance leases		6.9			5.5

Weighted average discount rate:
Operating leases		6.2	%		6.4	%
Finance leases		2.8	%		3.9	%

Maturities of lease liabilities at December 31, 2020 were as follows:

	Operating lease			Finance lease
2021	$	1,053,748		$	488,952
2022		961,452			487,224
2023		854,547			482,130
2024		687,013			483,167
2025		354,907			479,233
Thereafter		3,000,582			1,496,454
Total payment under lease agreements		6,912,249			3,917,160
Less imputed interest		(1,726,789	)		(409,825	)
Total lease liability	$	5,185,460		$	3,507,335