NOTE 5RIGHT TO USE ASSETS AND LEASE LIABILITY

 

During the year December 31, 2024, and 2023, the Company had outstanding two leases with aggregate payments of $15,130 and $29,995 per month, respectively, expiring through July 31, 2025. The Company terminated one lease during the year ended December 31, 2024 with payments of $15,926 per month.

 

Right to use assets is summarized below:

  

  

December 31,

2024

(000’s)

  

December 31,

2023

(000’s)

 
Right to use asset  $502   $995 
Less accumulated amortization   (406)   (583)
Right to use assets, net  $96   $412 

 

 

During the years ended December 31, 2024, and 2023, the Company recorded $237,774 and $378,263 as lease expense to current period operations, respectively.

 

Lease liability is summarized below:

 

  

December 31,

2024

(000’s)

  

December 31,

2023

(000’s)

 
Total lease liability  $102   $452 
Less: short term portion   (102)   (349)
Long term portion  $-   $103 

 

Maturity analysis under these lease agreements are as follows (000’s):

 

      
Year ended December 31, 2025   106 
Total   106 
Less: Present value discount   (4)
Lease liability  $102 

 

Lease expense for the year ended December 31, 2024, and 2023 was comprised of the following:

 

  

December 31,

2024

(000’s)

  

December 31,

2023

(000’s)

 
Operating lease expense  $171   $337 
Short-term lease expense   66    33 
Variable lease expense   -    8 
Total  $237   $378 

 

Historical Timeline

Fiscal YearFiled
2024Apr 15, 2025Showing above
2023Apr 16, 2024
2022Mar 31, 2023
2021Mar 31, 2022
2020Mar 15, 2021
2019Mar 13, 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.