XML 26 R16.htm IDEA: XBRL DOCUMENT

Leases

9 Months Ended

Sep. 30, 2021

10.

Leases

The Company leases an office, a manufacturing plant and certain equipment under non-cancelable operating lease agreements. The leases have remaining lease terms of two and a half years to five years. The plant lease includes an option to extend the lease for up to five years. In addition, CAT leased a vacant retail space that had been converted for the use of COVID-19 testing, vaccine distribution and a medical lab with a lease term for eighteen months which CAT has ended the lease of the vacant retail space as of September 30, 2021.

Supplemental balance sheet information related to leases is as follows:

Balance Sheet Location		September 30, 2021
Operating Leases
Right-of-use assets, net		$	1,255,803

Current liabilities	Lease liability, current maturities		(315,389	)
Non-current liabilities	Lease liability, net of current maturities		(940,926	)
Total operating lease liabilities		$	(1,256,315	)

Finance Leases
Right-of-use assets		$	37,000

Current liabilities	Lease liability, current maturities		(19,347	)
Non-current liabilities	Lease liability, net of current maturities		(16,571	)
Total finance lease liabilities		$	(35,918	)

Weighted Average Remaining Lease Term
Operating leases			3.93 years
Finance leases			1.86 years
Weighted Average Discount Rate
Operating leases			3	%
Finance leases			3	%

As the leases do not provide an implicit rate, the Company used an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments, which is reflective of the specific term of the leases and economic environment of each geographic region.

Anticipated future lease costs, which are based in part on certain assumptions to approximate minimum annual rental commitments under non-cancelable leases, are as follows:

Year Ending December 31,		Operating		Financing		Total
2021	$	87,085	$	5,040	$	92,125
2022		348,984		20,160		369,144
2023		330,300		11,760		342,060
2024		324,000		—		324,000
2025		243,000		—		243,000
Total lease payments		1,333,369		36,960		1,370,329
Less: Imputed interest		77,054		1,042		78,096
Present value of lease liabilities	$	1,256,315	$	35,918	$	1,292,233

Chicago Airport Testing has subleased its leased vacant area for a period of one year, the sublessee has the option to terminate at any time after the first six months. The sublessee elected to terminate the Agreement, effective as of July 31, 2021 and the Company has no remaining lease revenue from the sublessee.