Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.21.2
Leases
6 Months Ended
Jun. 30, 2021
Leases  
Leases

Note 10 – Leases

 

The Company’s corporate offices and operational facility in Colombia under short-term non-cancelable real property lease agreements that expire within a year. The Company doesn’t have any other office or equipment leases subject to the recently adopted ASU 2016-02. In the locations in which it is economically feasible to continue to operate, management expects that lease options will be exercised. The Company’s corporate office is under a real property lease that contains a one-time renewal option for an additional 36 months that we determined would be reasonably certain to be extended. The office lease contains provisions requiring payment of property taxes, utilities, insurance, maintenance and other occupancy costs applicable to the leased premise. As the Company’s leases do not provide an implicit discount rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments.

 

 

ONE WORLD PHARMA, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

 

The components of lease expense were as follows:

 

    For the Six  
    Months Ended  
    June 30,  
    2021  
Operating lease cost:        
Amortization of assets   $ 22,637  
Interest on lease liabilities     6,493  
Lease payments on short term leases     21,193  
Total lease cost   $ 50,323  

 

Supplemental balance sheet information related to leases was as follows:

 

    June 30,  
    2021  
Operating leases:        
Operating lease assets   $ 172,393  
         
Current portion of operating lease liabilities   $ 47,691  
Noncurrent operating lease liabilities     131,720  
Total operating lease liabilities   $ 179,411  
         
Weighted average remaining lease term:        
Operating leases     3.33 years  
         
Weighted average discount rate:        
Operating leases     6.75 %

 

Supplemental cash flow and other information related to leases was as follows:

 

    For the Six  
    Months Ended  
    June 30,  
    2021  
Cash paid for amounts included in the measurement of lease liabilities:        
Operating cash flows used for operating leases   $ 22,114  

 

Future minimum annual lease commitments under non-cancelable operating leases are as follows at June 30, 2021:

 

    Operating  
    Leases  
       
2021 (for the six months remaining)   $ 28,892  
2022     59,223  
2023     61,000  
2024     52,098  
Total minimum lease payments     201,213  
Less interest     21,802  
Present value of lease liabilities     179,411  
Less current portion     47,691  
Long-term lease liabilities   $ 131,720  

 

 

ONE WORLD PHARMA, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)