Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.21.1
Leases
3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Leases

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 leases a vacant retail space that has been converted for the use of COVID-19 testing, vaccine distribution and a medical lab. The CAT lease term is for eighteen months.

 Supplemental balance sheet information related to leases is as follows:   


Balance Sheet Location
March 31, 2021


Operating Leases




Right-of-use assets, net
$ 1,538,885







Current liabilities Lease liability, current maturities 

(413,084

)

Non-current liabilities Lease liability, net of current maturities
(1,126,283 )

Total operating lease liabilities
$ (1,539,367 )







Finance Leases




Right-of-use assets
$ 46,653







Current liabilities Lease liability, current maturities
(19,059 )

Non-current liabilities Lease liability, net of current maturities 
(26,318 )

Total finance lease liabilities 
$ (45,377 )







Weighted Average Remaining Lease Term






Operating leases

4.15 years

Finance leases

2.36 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
$ 340,209
$ 15,120
$ 355,329

2022

401,622

20,160

421,782

2023

330,300

11,760

342,060

2024

324,000

-

324,000

2025

243,000

-

243,000

Total lease payments

1,639,131

47,040

1,686,171

Less: Imputed interest

99,764

1,663

101,427

Present value of lease liabilities
$ 1,539,367
$ 45,377
$ 1,584,744

 

CAT 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 month. Anticipated future lease revenue, under this leases is $1,440,000 for the remaining period ending December 31, 2021 and $320,000 for the year ending December 31, 2022.