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LEASES

12 Months Ended

Dec. 31, 2021

19. LEASES

The Company has no finance leases and its operating leases for a warehouse and equipment terminated on August 15, 2021. The Company has chosen not to renew the terminated leases. The ROU asset value was determined based on the lease liability adjusted for lease incentives received. Lease expense has been recognized on a straight-line basis

over the lease term. Certain costs incidental to the use of the property were separate from the minimum rent payment and were not considered in the determination of the lease liability and ROU asset. The Company elected the policy to not separate lease from non-lease components if they are combined with the minimum rent payment. The option periods were not included in the determination of the lease liability and right-of-use asset.

The operating lease cost component of the lease expense was $38,892 and $103,312 for the years ended December 31, 2021 and 2020, respectively. The cash paid for amounts included in the measurement of lease liabilities as a component of cash flows related to leases was $32,272 and $106,101 for the years ended December 31, 2021 and 2020, respectively.

Assets and liabilities associated with these leases included in the Balance Sheets are as follows:


	December 31, 2021		December 31, 2020
OPERATING LEASES
Other assets	$	—	$	38,892
Other accrued liabilities	$	—	$	38,892
Other long-term liabilities		—		—
Total operating lease liabilities	$	—	$	38,892