Annual report pursuant to Section 13 and 15(d)

6. Leases

v3.22.1
6. Leases
12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
6. 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 and one lease agreement in the US, 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 properties 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 included in the consolidated balance sheet are as follows:

 

   

December 31,

2021

 

December 31,

2020

Non-current assets                
Right of use assets - operating leases, net of amortization   $ 589,288     $ 687,568  
Right of use assets - finance leases, net of depreciation – included in property and equipment   $ 15,520     $ 27,119  

  

Lease costs consists of the following: 

                 
    Year ended December 31,
    2021   2020
Finance lease cost:   $ 10,906     $ 14,040  
Amortization of right-of-use assets     10,102       12,870  
Interest expense on lease liabilities     804       1,170  
                 
Operating lease cost     244,639       265,081  
                 
Total lease cost   $ 255,545     $ 279,121  

  

Other lease information:

    Year ended December 31,
    2021   2020
Cash paid for amounts included in the measurement of lease liabilities        
Operating cash flows from finance leases   $ (804 )   $ (1,170 )
Operating cash flows from operating leases     (244,639 )     (265,081 )
Financing cash flows from finance leases     (10,172 )     (12,666 )
                 
Right-of-use assets obtained in exchange for new finance leases     -       470  
Right-of-use assets disposed of under operating leases prior to lease maturity     (224,793 )     (21,588 )
Right-of -use assets obtained in exchange for new operating leases   $ 406,276     $ 84,918  
Weighted average remaining lease term – finance leases     1.93 years       2.74 years  
Weighted average remaining lease term – operating leases     2.60 years       2.83 years  
Weighted average discount rate – finance leases     3.73 %     3.65 %
Weighted average discount rate – operating leases     2.73 %     3.59 %

 

Maturity of Leases

 

Finance lease liability

 

The amount of future minimum lease payments under finance leases as of December 31, 2021 is as follows:

 

Finance lease liability   Amount
2022   8,802  
2023     7,053  
2024     818  
Total undiscounted minimum future lease payments     16,673  
Imputed interest     (611 )
Total finance lease liability   $ 16,063  
Disclosed as:        
Current portion   $ 8,347  
Non-Current portion     7,716  
    $ 16,063  

 

Operating lease liability

 

The amount of future minimum lease payments under operating leases as of December 31, 2021 is as follows:

 

Operating lease liability   Amount
2022   257,455  
2023     190,132  
2024     80,541  
2025     46,416  
2026     31,741  
Total undiscounted minimum future lease payments     606,285  
Imputed interest     (21,654 )
Total operating lease liability   $ 584,631  
Disclosed as:        
Current portion   $ 244,467  
Non-Current portion     340,164  
    $ 584,631