Annual report pursuant to Section 13 and 15(d)

Leases

v3.20.1
Leases
12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Leases

Note 11 – Leases

 

The Company’s corporate offices and operational facility in Colombia under non-cancelable real property lease agreements that expire on October 31, 2021 and September 30, 2029, respectively. 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, while the Company’s operational facility in Colombia contains a 60 month extension option that we did not determine to 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.

 

The components of lease expense were as follows:

 

    For the  
    Year Ended  
    December 31,  
    2019  
Operating lease cost:        
Amortization of assets   $ 45,510  
Interest on lease liabilities     22,235  
Total lease cost   $ 67,745  

 

Supplemental balance sheet information related to leases was as follows:

 

    December 31,  
    2019  
Operating leases:        
Operating lease assets   $ 502,706  
         
Current portion of operating lease liabilities   $ 55,101  
Noncurrent operating lease liabilities     453,251  
Total operating lease liabilities   $ 508,352  
         
Weighted average remaining lease term:        
Operating leases     9.75 years  
         
Weighted average discount rate:        
Operating leases     6.75%  

 

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

 

    For the  
    Year Ended  
    December 31,  
    2019  
Cash paid for amounts included in the measurement of lease liabilities:        
Operating cash flows used for operating leases   $ 39,864  
         
Leased assets obtained in exchange for lease liabilities:        
Total operating lease liabilities   $ 548,216  

 

Future minimum annual lease commitments under non-cancelable operating leases are as follows at December 31, 2019:

 

    Operating  
    Leases  
       
2020   $ 160,858  
2021     80,877  
2022     34,528  
2023     35,909  
2024     37,345  
Thereafter     198,669  
Total minimum lease payments     548,186  
Less interest     39,834  
Present value of lease liabilities     508,352  
Less current portion     55,101  
Long-term lease liabilities   $ 453,251