Note 8 - Operating Leases

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.

For the years ended December 31, 2023 and 2022, the Company recorded an operating lease right of use asset and liabilities as follows:

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

The weighted average remaining lease term for operating leases is 0.25 years and the weighted average discount rate used in calculating the operating lease asset and liability is 5.0%. For the year ended December 31, 2023 and 2022, payments on lease obligations were $45,000 and $260,360 respectively, and amortization on the right of use assets was $40,924 and $338,535 respectively.

For the years ended December 31, 2023 and 2022, 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: