| LEASES |
NOTE 11 – LEASES
The components of lease cost for operating leases for the year ended
December 31, 2021 and the period from February 21, 2020 (inception) to December 31, 2020, were as follows:
| Schedule of lease cost for operating leases |
|
|
|
|
|
|
|
|
| |
|
2021 |
|
|
2020 |
|
| Lease Cost |
|
|
|
|
|
|
|
|
| Operating lease cost |
|
$ |
398,440 |
|
|
$ |
16,000 |
|
| Short-term lease cost |
|
|
219,604 |
|
|
|
11,120 |
|
| Variable lease cost |
|
|
– |
|
|
|
– |
|
| Sublease income |
|
|
– |
|
|
|
– |
|
| Total lease cost |
|
$ |
618,044 |
|
|
$ |
27,120 |
|
Supplemental cash flow information related to
leases for the year ended December 31, 2021 and the period from February 21, 2020 (inception) to December 31, 2020, was as follows:
| Schedule of supplemental cash flow information related to leases |
|
|
|
|
|
|
|
|
| |
|
2021 |
|
|
2020 |
|
| Other Lease Information |
|
|
|
|
|
|
|
|
| Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|
|
| Operating cash flows from operating leases |
|
$ |
323,162 |
|
|
$ |
194,175 |
|
The following table summarizes the lease-related assets and liabilities
recorded on the balance sheet at December 31, 2021 and December 31, 2020:
| Schedule of lease-related assets and liabilities |
|
|
|
|
|
|
|
|
| |
|
2021 |
|
|
2020 |
|
| Lease Position |
|
|
|
|
|
|
|
|
| Operating Leases |
|
|
|
|
|
|
|
|
| Operating lease right-of-use assets |
|
$ |
2,182,612 |
|
|
$ |
842,357 |
|
| Right of use liability operating lease short term |
|
|
456,207 |
|
|
|
141,943 |
|
| Right of use liability operating lease long term |
|
|
1,767,506 |
|
|
|
614,414 |
|
| Total operating lease liabilities |
|
$ |
2,223,713 |
|
|
$ |
756,357 |
|
The Company utilizes the incremental borrowing rate in determining
the present value of lease payments unless the implicit rate is readily determinable. The Company recognized an initial right of use
asset and lease liability of $1,707,466 for leases entered into during the year ended December 31, 2021.
| Schedule of right of use asset and lease liability |
|
|
|
|
|
|
|
|
| Lease Term and Discount Rate |
|
|
|
|
|
|
| Weighted-average remaining lease term (years) |
|
|
|
|
|
|
|
|
| Operating leases |
|
|
4.4 |
|
|
|
4.9 |
|
| Weighted-average discount rate |
|
|
|
|
|
|
|
|
| Operating leases |
|
|
5.5% |
|
|
|
5.5% |
|
The following table provides the maturities of
lease liabilities at December 31, 2021:
| Schedule of maturities of lease liabilities |
|
|
|
| |
|
Operating |
|
| |
|
Leases |
|
| |
|
|
|
| 2022 |
|
$ |
770,615 |
|
| 2023 |
|
|
1,184,356 |
|
| 2024 |
|
|
1,143,532 |
|
| 2025 |
|
|
1,118,146 |
|
| 2026 |
|
|
910,289 |
|
| Total future undiscounted lease payments |
|
|
5,126,937 |
|
| Less: Interest |
|
|
(610,866 |
) |
| Present value of lease liabilities |
|
$ |
4,516,070 |
|
Note that amounts above include future
payments for a lease signed as of December 31, 2021 related to a facility to be constructed in Liberty Hill, Texas by an entity associated
with the Company’s founders (see Note 6)
|