LEASE LIABILITIES |
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| LEASE LIABILITIES | NOTE 6 – LEASE LIABILITIES
The Company determines whether a contract is, or contains, a lease at inception. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset during the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at lease commencement based upon the estimated present value of unpaid lease payments over the lease term. The Company leases its office and warehouse locations, and certain warehouse equipment. Leases with an initial term of 12 months or less are not included on the condensed balance sheets.
On April 1, 2022, the Company entered a facility lease for a 4,000 square foot facility in St. Joseph, Missouri, to expand its manufacturing business to include advanced premium golf shafts. The lease is for 24 months, and the monthly rent is approximately $1,500. During 2023, the Company amended its lease by adding an additional 5,000 square feet and extending the lease term to December 2025.
The Company’s ROU asset balance was $34,000 as of December 31, 2024. During the six months ending June 30, 2025, the Company recorded an increase of ROU assets of $85,000 related to its leases, resulting in a ROU asset balance of $102,000 as of June 30, 2025.
The Company’s lease liability balance was $34,000 as of December 31, 2024. During the six months ending June 30, 2025, the company extended its lease that included additional parking, resulting in an increase in our right of use assets and lease liabilities of $85,000. As of June 30, 2025 our lease liability was $102,000, of which the current portion of lease liability was $37,000, leaving a long-term lease liabilities balance of $65,000.
During the six months ending June 30, 2025 and 2024, lease costs totaled approximately $102,000 and $48,000, respectively.
As of June 30, 2025, the weighted average remaining lease terms for operating lease is 1.50 years, and the weighted average discount rate for operating leases is 10.00%.
Future minimum lease payments under the leases are as follows
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