authID Inc. Leases Disclosure
NOTE 13 – LEASE OBLIGATION PAYABLE
The Company entered into a lease in March 2017 for the rental of its printer for its secured plastic and credential card products business under an arrangement that is classified as a capital lease. The leased equipment is amortized on a straight line basis over its lease term including the last payment (61 payments) which would transfer ownership to the Company. Total amortization related to the lease equipment as of December 31, 2017 is $26,614. The following is a schedule showing the future minimum lease payments under capital lease by year and the present value of the minimum lease payments as of December 31, 2017. The interest rate related to the lease obligation is 12% and the maturity date is March 31, 2022. Future cash payment related to this capital lease are as follow for the calendar years ending from 2018-2022.
| 2018 | $ | 43,096 | |||
| 2019 | 43,096 | ||||
| 2020 | 43,096 | ||||
| 2021 | 43,096 | ||||
| 2022 | 10,776 | ||||
| Total minimum lease payments | 183,160 | ||||
| Less: Amount representing interest | 40,231 | ||||
| Present value of minimum lease payments | $ | 142,929 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2017 | Mar 15, 2018 | Showing above |
| 2016 | Jul 12, 2017 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.