Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Sep. 30, 2020
Leases [Abstract]  

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 Nine  
    Months Ended  
    September 30,  
Operating lease cost:        
Amortization of assets   $ 45,388  
Interest on lease liabilities     23,149  
Total lease cost   $ 68,537  


Supplemental balance sheet information related to leases was as follows:


    September 30,  
Operating leases:        
Operating lease assets   $ 423,695  
Current portion of operating lease liabilities   $ 58,155  
Noncurrent operating lease liabilities     377,170  
Total operating lease liabilities   $ 435,325  
Weighted average remaining lease term:        
Operating leases     9 years  
Weighted average discount rate:        
Operating leases     6.75 %


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


    For the Nine  
    Months Ended  
    September 30,  
Cash paid for amounts included in the measurement of lease liabilities:        
Operating cash flows used for operating leases   $ 73,027  
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 September 30, 2020:


2020   $ 28,566  
2021     80,877  
2022     34,528  
2023     35,909  
2024     37,345  
Thereafter     198,669  
Total minimum lease payments     415,894  
Less interest     19,431  
Present value of lease liabilities     435,325  
Less current portion     58,155  
Long-term lease liabilities   $ 377,170