General form of registration statement for all companies including face-amount certificate companies

Leases

v3.19.2
Leases
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Leases

Note 12 – Leases

 

The Company’s corporate offices are within leased facilities. The Company doesn’t have any other office or equipment leases subject to the recently adopted ASU 2016-02. This real property lease contains a one-time renewal option for an additional 36 months. In the locations in which it is economically feasible to continue to operate, management expects that lease options will be exercised. 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 lease does 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.

 

The components of lease expense were as follows:

 

    For the Six Months Ended  
    June 30, 2019  
Finance lease cost:        
Amortization of assets   $ 19,971  
Interest on lease liabilities     9,158  
Total lease cost   $ 29,129  

 

Supplemental balance sheet information related to leases were as follows:

 

    June 30, 2019  
Finance lease:        
Right-of-use asset   $ 278,725  
Accumulated amortization     (19,971 )
Right-of-use asset, net   $ 258,754  
         
Current portion of finance lease liability   $ 38,561  
Long-term finance lease liability     222,358  
Total finance lease liability   $ 260,919  
         
Weighted average remaining lease term:        
Operating leases     N/A  
Finance leases     5.5 years  
         
Weighted average discount rate:        
Operating leases     N/A  
Finance leases     6.75 %

 

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

 

    For the Six Months Ended  
    June 30, 2019  
Cash paid for amounts included in the measurement of lease liabilities:        
Operating cash flows used for finance leases   $ 26,964  
         
Leased assets obtained in exchange for lease liabilities:        
Total operating lease liabilities   $ -  
Total finance lease liabilities   $ 260,919  

 

The Company’s maturities of lease liabilities under finance leases as of June 30, 2019 are as follows:

 

    Finance  
    Leases  
       
2019   $ 27,234  
2020     55,824  
2021     57,498  
2022     59,223  
2023     61,000  
Thereafter     51,957  
Total     312,876  
Less interest     56,461  
Present value of lease liabilities     260,919  
Less current portion     38,561  
Long-term lease liabilities   $ 222,358  

 

There were no operating leases as of June 30, 2019.