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Note 3 - Leases

6 Months Ended

Jun. 30, 2021

Lessee, Operating and Finance Leases [Text Block]

NOTE 3 - 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 expired in February 2021, and due to the closure of the activity in North America, the lease has not been extended.

During the three months ended June 30, 2021, cash paid for amounts included for the measurement of finance lease liabilities was $239,818, and the Company recorded finance lease expenses included in other income (expenses) of $122,838.

During the six months ended June 30, 2021, cash paid for amounts included for the measurement of lease liabilities was $545,872, and the company recorded operating lease expense of $504,859.

Supplemental balance sheet information related to leases as of June 30, 2021 and December 31, 2020 was as follows

	June 30, 2021			December 31, 2020
Operating leases:
Operating lease right-of-use	$	4,678,293		$	4,947,734

Operating lease liabilities - current	$	698,645		$	1,026,235
Operating lease liabilities – long-term		3,979,648			4,159,225
Total operating lease liabilities	$	4,678,293		$	5,185,460

Finance leases:
Property and equipment, at cost	$	4,665,397		$	4,819,201
Accumulated depreciation		(1,419,620	)		(1,389,488	)
Property and equipment, net	$	3,245,777		$	3,429,713

Finance lease liabilities - current	$	387,999		$	394,839
Finance lease liabilities – long-term		2,817,567			3,112,496
Total finance lease liabilities	$	3,205,566		$	3,507,335

Weighted average remaining lease term:
Operating leases		9.8			10.0
Finance leases		6.3			6.9

Weighted average discount rate:
Operating leases		6.2	%		6.2	%
Finance leases		2.9	%		2.8	%

Maturities of lease liabilities at June 30, 2021 were as follows:

	Operating lease			Finance lease
2021 (remaining 6 months)	$	488,964		$	236,491
2022		932,806			471,310
2023		831,117			466,378
2024		673,369			467,383
2025		350,996			463,574
Thereafter		2,969,711			1,447,967
Total payment under lease agreements		6,246,963			3,553,103
Less imputed interest		(1,568,670	)		(347,537	)
Total lease liability	$	4,678,293		$	3,205,566