Quarterly report pursuant to Section 13 or 15(d)

Operating Leases

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Operating Leases
9 Months Ended
Sep. 30, 2019
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 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. The lease was extended on June 1, 2019 for five years.

 

On September 1, 2019, the Company entered into a one year lease for office space in Grand Forks, North Dakota. Monthly rent is $590 a month through August 2020.

 

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

 

For the the twelve months ended December 31

 

2019

 

$

116,205

 

2020

 

446,710

 

2021

 

438,840

 

2022

 

333,960

 

2023

 

45,000

 

thereafter

 

11,250

 

Total

 

1,391,800

 

Less discount

 

(92,843

)

Less short term leases

 

(14,365

)

Total lease liabilities

 

1,284,757

 

Less current portion

 

(383,307

)

Operating lease obligation, net of current portion

 

$

901,450

 

The weighted average remaining lease term for operating leases is 2.0 years and the weighted average discount rate used in calculating the operating lease asset and liability is 5.0%. For the nine months ended September 30, 2019, payments on lease obligations were $345,345 and amortization on the right of use assets was $350,952.