Quarterly report pursuant to Section 13 or 15(d)

Operating Leases

Operating Leases
3 Months Ended
Mar. 31, 2019
Notes to Financial Statements  
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 January 27, 2015, the Company entered into a lease for office space in Lewis Center, Ohio, commencing February 1, 2015 which lease as amended expires in February 2020. The lease provides for the option to extend the lease for up to five additional years. Monthly rent is $1,575 through February 2020.


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.


On September 1, 2018, the Company entered into a one year lease for office space in Grand Forks, North Dakota. Monthly rent is $575 a month through August 2019.


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


For the Twelve Months Ended March 31      
2020   $ 459,040  
2021     401,340  
2022     393,840  
2023     157,680  
Total     1,411,900  
Less discount     (66,641 )
Less short term leases     (20,200 )
Total lease liabilities     1,325,059  
Less current portion     (381,245 )
Operating lease obligation, net of current portion   $ 943,814  


The weighted average remaining lease term for operating leases is 2.4 years and the weighted average discount rate used in calculating the operating lease asset and liability is 5.0%. For the three months ended March 31, 2019, payments on lease obligations were $115,931 and amortization on the right of use assets was $94,353.