|6 Months Ended|
Jun. 30, 2021
The Company leases an office, a manufacturing plant and certain equipment under non-cancelable operating lease agreements.
Supplemental balance sheet information related to leases is as follows:
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:
Chicago Airport Testing has subleased its leased vacant area for a period of one year, the licensee has the option to terminate at any time after the first six months. The licensee elected to terminate the Agreement, subsequent to June 30, 2021. The effective date of the termination is July 31, 2021 and the Company has $160,000 for the remaining lease revenue.
The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.
Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef