One World Products, Inc. Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

9 Months Ended

Sep. 30, 2022

The components of lease expense were as follows:

Schedule of Components of Lease Expense

	For the Nine
	Months Ended
	September 30,
	2022
Operating lease costs:
Amortization of assets	$	93,011
Interest on lease liabilities		76,251
Lease payments on short term leases		31,999
Total lease cost	$	201,261

Supplemental balance sheet information related to leases was as follows:

	September 30,
	2022
Operating leases:
Operating lease assets	$	32,357

Current portion of operating lease liabilities	$	17,106
Noncurrent operating lease liabilities		15,703
Total operating lease liabilities	$	32,809

Weighted average remaining lease term:
Operating leases		1.75 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,
	2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	64,067

Early extinguishment of lease:
Lease liability terminated		1,438,830
Right-of use asset terminated		(1,418,682	)
Gain on early extinguishment of lease		20,148

Leased assets obtained in exchange for lease liabilities:
Total operating lease liabilities	$	1,535,706

Future minimum annual lease commitments under non-cancelable operating leases are as follows at September 30, 2022:

	Operating
	Leases

2022 (for the three months remaining)	$	4,653
2023		19,016
2024		11,335
Total minimum lease payments		35,004
Less interest		2,195
Present value of lease liabilities		32,809
Less current portion		17,106
Long-term lease liabilities	$	15,703