Annual report pursuant to Section 13 and 15(d)

Leases

v3.21.1
Leases
12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases

6. Leases

 

The Company’s portfolio of leases contains both finance and operating leases that relate to real estate agreements, vehicles and office equipment agreements.

Operating leases

Real estate agreements 

The Company has several property lease agreements in Italy and Austria which have terms in excess of a twelve month period, these property leases are for our administrative operations in these countries. The Company does not and does not intend to take ownership of the property at the end of the lease term. 

Vehicle agreements 

The Company leases several vehicles for business use purposes, the terms of these leases range from twenty four to thirty six months. The Company does not and does not intend to take ownership of the vehicles at the end of the lease term. 

Finance Leases 

Office equipment agreements 

The Company has entered into several finance leases for office equipment, the term of these leases range from thirty six to sixty months. The Company takes ownership of the office equipment at the end of the lease term. 

 

Right of use assets

 

Right of use assets are included in the consolidated balance sheet are as follows: 

 

   

December 31,

2020

 

December 31,

2019

Non-current assets                
Right of use assets - operating leases, net of amortization   $ 687,568     $ 792,078  
Right of use assets - finance leases, net of depreciation – included in property, plant and equipment   $ 27,119     $ 37,091  

 

 

Lease costs consists of the following:

    Year ended December 31,
    2020   2019
Finance lease cost:   $ 14,040     $ 13,292  
Amortization of right-of-use assets     12,870       11,890  
Interest expense on lease liabilities     1,170       1,402  
                 
Operating lease cost     265,081       210,881  
                 
Total lease cost   $ 279,121     $ 224,173  

   

Other lease information:

    Year ended December 31,
    2020   2019
Cash paid for amounts included in the measurement of lease liabilities        
Operating cash flows from finance leases   $ (1,170 )   $ (1,252 )
Operating cash flows from operating leases     (265,081 )     (210,881 )
Financing cash flows from finance leases     (12,666 )     (11,371 )
                 
Right-of-use assets obtained in exchange for new finance leases     470       14,989  
Right-of-use assets disposed of under operating leases prior to lease maturity     (21,588 )     (81,263 )
Right-of -use assets obtained in exchange for new operating leases   $ 84,918     $ 442,281  
Weighted average remaining lease term – finance leases     2.74 years       3.46 years  
Weighted average remaining lease term – operating leases     2.83 years       3.74 years  
Weighted average discount rate – finance leases     3.65 %     3.52 %
Weighted average discount rate – operating leases     3.59 %     3.42 %

 

 

Maturity of Leases

 

Finance lease liability

 

The amount of future minimum lease payments under finance leases as of December 31, 2020 is as follows:

 

    Amount
2021     11,342  
2022     9,461  
2023     7,581  
2024     879  
Total undiscounted minimum future lease payments     29,263  
Imputed interest     (1,487 )
Total finance lease liability   $ 27,776  
Disclosed as:        
Current portion   $ 10,511  
Non-Current portion     17,265  
    $ 27,776  

 

Operating lease liability

 

The amount of future minimum lease payments under operating leases as of December 31, 2020 is as follows:

 

    Amount
2021     258,406  
2022     221,799  
2023     178,842  
2024 and beyond     31,304  
Total undiscounted minimum future lease payments     690,351  
Imputed interest     (34,591 )
Total operating lease liability   $ 655,760  
Disclosed as:        
Current portion   $ 238,899  
Non-Current portion     416,861  
    $ 655,760