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5.
OPERATING LEASES
On
January 3, 2022, the Company terminated the lease agreements for our office and warehouse leases in American Fork, Utah. In accordance
with ASC 842, the Company derecognized the right of use asset of $1,287,
net of accumulated amortization of $744.
The Company has also derecognized the corresponding lease liabilities of $521,
resulting in a loss on lease termination of $22.
Effective
April 26, 2022, the Company entered into an office space sub-lease agreement. See Note 14 – Subsequent Events.
The
components of lease expense and supplemental cash flow information related to leases for the period are as follows:
SCHEDULE
OF LEASE COST
| |
|
Three Months Ended March 31, |
|
| |
|
2022 |
|
|
2021 |
|
| Lease cost |
|
|
|
|
|
|
|
|
| Operating lease cost (included in general and administrative expenses in the Company’s statement of operations) |
|
$ |
107 |
|
|
$ |
175 |
|
| |
|
|
|
|
|
|
|
|
| Other information |
|
|
|
|
|
|
|
|
| Cash paid for amounts included in the measurement of lease liabilities |
|
$ |
171 |
|
|
$ |
196 |
|
| Weighted average remaining lease term – operating leases (in years) |
|
|
5.17 |
|
|
|
4.54 |
|
| Weighted average discount rate – operating leases |
|
|
4.0 |
% |
|
|
4.0 |
% |
SCHEDULE
OF OPERATING LEASES
| |
|
March 31, 2022 |
|
|
December 31, 2021 |
|
| Operating leases |
|
|
|
|
|
|
|
|
| Right-of-use assets |
|
$ |
1,548 |
|
|
$ |
2,177 |
|
| |
|
|
|
|
|
|
|
|
| Short-term operating lease liabilities |
|
$ |
337 |
|
|
$ |
592 |
|
| Long-term operating lease liabilities |
|
|
1,874 |
|
|
|
2,299 |
|
| Total operating lease liabilities |
|
$ |
2,211 |
|
|
$ |
2,891 |
|
SCHEDULE
OF PRESENT VALUE OF LEASE LIABILITIES
| Year ending |
|
Operating Leases |
|
| 2022 remaining |
|
|
337 |
|
| 2023 |
|
|
460 |
|
| 2024 |
|
|
472 |
|
| 2025 |
|
|
484 |
|
| 2026 and thereafter |
|
|
705 |
|
| Total lease payments |
|
|
2,458 |
|
| Less: Imputed interest/present value discount |
|
|
(247 |
) |
| Present value of lease liabilities |
|
$ |
2,211 |
|
|