RETRACTABLE TECHNOLOGIES INC Leases Disclosure
19. LEASES
The Company has no finance leases and its operating leases for a warehouse and equipment terminated on August 15, 2021. The Company has chosen not to renew the terminated leases. The ROU asset value was determined based on the lease liability adjusted for lease incentives received. Lease expense has been recognized on a straight-line basis
over the lease term. Certain costs incidental to the use of the property were separate from the minimum rent payment and were not considered in the determination of the lease liability and ROU asset. The Company elected the policy to not separate lease from non-lease components if they are combined with the minimum rent payment. The option periods were not included in the determination of the lease liability and right-of-use asset.
The operating lease cost component of the lease expense was $38,892 and $103,312 for the years ended December 31, 2021 and 2020, respectively. The cash paid for amounts included in the measurement of lease liabilities as a component of cash flows related to leases was $32,272 and $106,101 for the years ended December 31, 2021 and 2020, respectively.
Assets and liabilities associated with these leases included in the Balance Sheets are as follows:
| December 31, 2021 |
| December 31, 2020 | |||
OPERATING LEASES |
|
|
|
| ||
$ | — | $ | 38,892 | |||
$ | — | $ | 38,892 | |||
| — |
| — | |||
Total operating lease liabilities | $ | — | $ | 38,892 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2021 | Mar 31, 2022 | Showing above |
| 2020 | Mar 31, 2021 | |
| 2019 | Mar 30, 2020 | |
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.