|
5.
OPERATING LEASES
On
January 3, 2022, the Company terminated the lease agreements relating to our office and warehouse leases in American Fork, Utah. In accordance
with ASC 842, the Company derecognized the right-of-use assets of $543 and the corresponding lease liabilities of $521, resulting in
a loss on lease termination of $22.
On
April 26, 2022, the Company entered into an office space sub-lease agreement. The agreement requires us to pay $12 per month for an initial
term of eighteen months, which increases by 3% per annum after twelve months. In accordance with ASC 842, the Company recognized a right-of-use
asset and the related lease liability of $212 on the commencement date of the lease.
The
components of lease expense and supplemental cash flow information related to leases for the period are as follows:
SCHEDULE OF LEASE COST
| |
|
2022 |
|
|
2021 |
|
| |
|
Nine Months Ended September 30, |
|
| |
|
2022 |
|
|
2021 |
|
| Lease cost |
|
|
|
|
|
|
|
|
| Operating lease cost (included in general and administrative expenses in the Company’s condensed consolidated statements of operations) |
|
$ |
373 |
|
|
$ |
524 |
|
| |
|
|
|
|
|
|
|
|
| Other information |
|
|
|
|
|
|
|
|
| Cash paid for amounts included in the measurement of lease liabilities |
|
$ |
458 |
|
|
$ |
593 |
|
| Weighted average remaining lease term – operating leases (in years) |
|
|
3.99 |
|
|
|
4.15 |
|
| Weighted average discount rate – operating leases |
|
|
4.2 |
% |
|
|
4.0 |
% |
SCHEDULE OF OPERATING LEASES
| |
|
September 30, 2022 |
|
|
December 31, 2021 |
|
| Operating leases |
|
|
|
|
|
|
|
|
| Right-of-use assets |
|
$ |
1,624 |
|
|
$ |
2,177 |
|
| |
|
|
|
|
|
|
|
|
| Short-term operating lease liabilities |
|
$ |
481 |
|
|
$ |
592 |
|
| Long-term operating lease liabilities |
|
|
1,705 |
|
|
|
2,299 |
|
| Total operating lease liabilities |
|
$ |
2,186 |
|
|
$ |
2,891 |
|
SCHEDULE OF PRESENT VALUE OF LEASE LIABILITIES
| Year ending |
|
Operating Leases |
|
| 2022 remaining |
|
$ |
150 |
|
| 2023 |
|
|
583 |
|
| 2024 |
|
|
472 |
|
| 2025 |
|
|
484 |
|
| 2026 and thereafter |
|
|
705 |
|
| Total lease payments |
|
|
2,394 |
|
| Less: Imputed interest/present value discount |
|
|
(208 |
) |
| Present value of lease liabilities |
|
$ |
2,186 |
|
|