Telkonet, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

M. COMMITMENTS AND CONTINGENCIES (Tables)

M. COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

The components of lease expense for the year ended December 31, 2019 were as follows:

Operating lease expense:
Operating lease cost - fixed	$	237,900
Variable lease cost		118,198
Total operating lease cost	$	356,098

Other information related to leases

Other information related to leases as of September 30, 2019 was as follows:

Operating lease liability - current	$	223,835
Operating lease liability - long-term	$	758,315
Operating cash outflows from operating leases	$	219,798

Weighted-average remaining lease term of operating leases		5.6 years
Weighted-average discount rate of operating leases		8.5%

Future annual minimum operating lease payments

Future annual minimum operating lease payments as of December 31, 2019 were as follows:

2020	$	223,835
2021		242,299
2022		195,176
2023		193,169
2024 and thereafter		384,119
Total minimum lease payments	$	1,238,598
Less imputed interest		(256,448	)
Total	$	982,150

Future annual minimum operating lease payments non-cancelable

Future annual minimum lease payments under non-cancelable leases as of December 31, 2018 prior to our adoption of ASU 2016-02, Leases (Topic 842) are as follows:

2019	$	211,448
2020		223,417
2021		242,785
2022		195,176
2023		193,168
2024 and thereafter		380,714
Total	$	1,446,708

Sales tax accrual

The following table sets forth the change in the sales tax accrual during the years ended December 31:

	2019			2018
Balance, beginning of year	$	43,400		$	83,282
Sales tax collected		167,233			101,144
Provisions (reversals)		(10,664	)		30,465
Payments		(173,012	)		(171,491	)
Balance, end of year	$	26,957		$	43,400