Quarterly report pursuant to Section 13 or 15(d)

Operating Leases

Operating Leases
6 Months Ended
Jun. 30, 2022
Operating Leases  
Operating Leases

Note 10 - Operating Leases


In 2016, the Company entered into a six-year agreement to lease trailers used in the delivery of its products. Monthly payments currently total $32,820.


On July 1, 2015, the Company entered into a five-year lease for warehouse space in Corsicana, Texas. Rent is $3,750 monthly throughout the term of the lease. The Company is also responsible for the pro rata share of the projected monthly expenses for the property taxes. The current pro rata share is 882. The lease was extended on June 1, 2019 for five years. The Company recorded a right of use asset and an operating lease liability of $145,267. This amount represents the difference between the value from the remaining lease and the extended lease.


On September 1, 2019, the Company entered into a one-year lease for office space in Grand Forks, North Dakota. Monthly rent was $590 a month through August 2020. The lease was not renewed and the Company vacated the space.


Future remaining minimum lease payments under these non-cancelable leases are as follows:


For the twelve months ended June 30,






$ 163,260












Less discount



(7,203 )

Total lease liabilities





Less current portion



(158,899 )

Operating lease obligation, net of current portion


$ 33,189



The weighted average remaining lease term for operating leases is 0.50 years and the weighted average discount rate used in calculating the operating lease asset and liability is 5.0%. For the six months ended June 30, 2022, payments on lease obligations were $143,780 and amortization on the right of use assets was $201,634.


For the six months ended June 30, 2022 and 2021, the Company’s lease cost consists of the following components, each of which is included in costs and expenses within the Company’s consolidated statements of operations:



For the Six Months Ended

June 30,




For the




June 30,



Operating lease cost


$ 201,634



$ 201,434


Short term lease costs









Total lease costs


$ 201,634



$ 204,974