KORU Medical Systems Annual report pursuant to Section 13 and 15(d)

LEASES (Tables)

12 Months Ended

Dec. 31, 2020

The components of lease expense were as follows:

	Years Ended
	December 31,
	2020		2019

Operating lease cost	$	151,686	$	149,594
Short-term lease cost		65,227		21,362
Total lease cost	$	216,913	$	170,956

Finance lease cost:
Amortization of right-of-use assets	$	5,302	$	4,837
Interest on lease liabilities		237		239
Total finance lease cost	$	5,539	$	5,076

Supplemental cash flow information related to leases was as follows:

	Years Ended
	December 31,
	2020		2019

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	136,888	$	110,120
Financing cash flows from finance leases	$	5,296	$	4,783

Supplemental balance sheet information related to leases was as follows:

	December 31, 2020			December 31, 2019
Operating Leases
Operating lease right-of-use assets	$	236,846		$	373,734

Operating lease liability - current		141,293			136,888
Operating lease liability, net of current portion		95,553			236,846
Total operating lease liabilities	$	236,846		$	373,734

Finance Leases
Property and equipment, at cost	$	12,725		$	12,725
Accumulated depreciation		(10,139	)		(4,837	)
Property and equipment, net	$	2,586		$	7,888

Finance lease liability – current		2,646			5,296
Finance lease liability, net of current portion		—			2,646
Total finance lease liabilities	$	2,646		$	7,942

	December 31, 2020	December 31, 2019

Weighted Average Remaining Lease Term
Operating leases	1.4 Years	2.4 Years
Finance leases	0.7 Years	1.3 Years

Weighted Average Discount Rate
Operating leases	4.75%	4.75%
Finance leases	4.75%	4.75%

Maturities of lease liabilities are as follows:

Year Ending December 31,	Operating Leases			Finance Leases
2021	$	149,476		$	2,705
2022		97,256			—
2023		—			—
2024		—			—
2025		—			—
Thereafter		—			—
Total undiscounted lease payments		246,732			2,705
Less: imputed interest		(9,886	)		(59	)
Total lease liabilities	$	236,846		$	2,646