| LEASES |
NOTE 6 — LEASES
We have finance and operating
leases for our corporate office and certain office and computer equipment. Our leases have remaining lease terms of 1 to
3 years, some of which include options to extend the leases annually and some with options to terminate the leases within 1 year.
The components of lease expense
were as follows:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three
Months Ended |
|
Nine
Months Ended |
|
| |
|
September
30, |
|
September
30, |
|
| |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating lease cost |
|
$ |
37,921 |
|
$ |
37,922 |
|
$ |
113,764 |
|
$ |
111,672 |
|
| Short-term lease cost |
|
|
19,846 |
|
|
5,535 |
|
|
33,535 |
|
|
18,196 |
|
| Total lease cost |
|
$ |
57,767 |
|
$ |
43,457 |
|
$ |
147,299 |
|
$ |
129,868 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance
lease cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization
of right-of-use assets |
|
$ |
791 |
|
$ |
1,061 |
|
$ |
4,502 |
|
$ |
3,182 |
|
| Interest
on lease liabilities |
|
|
47 |
|
|
47 |
|
|
199 |
|
|
178 |
|
| Total finance lease cost |
|
$ |
838 |
|
$ |
1,108 |
|
$ |
4,701 |
|
$ |
3,360 |
|
Supplemental cash flow information
related to leases was as follows:
| |
|
|
|
|
|
|
|
| |
|
Nine
Months Ended |
|
| |
|
September
30, |
|
| |
|
2020 |
|
2019 |
|
| Cash
paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|
| Operating cash flows from operating leases |
|
$ |
113,764 |
|
$ |
111,672 |
|
| Financing cash flows from finance leases |
|
|
4,502 |
|
|
3,122 |
|
Supplemental balance sheet
information related to leases was as follows:
| |
|
|
|
|
|
|
|
| |
|
September
30,
2020 |
|
December
31,
2019 |
|
| |
|
|
|
|
|
|
|
| Operating
Leases |
|
|
|
|
|
|
|
| Operating
lease right-of-use assets |
|
$ |
271,679 |
|
$ |
373,734 |
|
| |
|
|
|
|
|
|
|
| Operating
lease current liabilities |
|
|
140,450 |
|
|
136,888 |
|
| Operating
lease long term liabilities |
|
|
131,229 |
|
|
236,846 |
|
| Total
operating lease liabilities |
|
$ |
271,679 |
|
$ |
373,734 |
|
| |
|
|
|
|
|
|
|
| Finance
Leases |
|
|
|
|
|
|
|
| Property
and equipment, at cost |
|
$ |
12,725 |
|
$ |
12,725 |
|
| Accumulated
depreciation |
|
|
(9,344 |
) |
|
(4,837 |
) |
| Property
and equipment, net |
|
$ |
3,381 |
|
$ |
7,888 |
|
| |
|
|
|
|
|
|
|
| Finance
lease current liabilities |
|
|
3,026 |
|
|
5,296 |
|
| Finance
lease long term liabilities |
|
|
414 |
|
|
2,646 |
|
| Total
finance lease liabilities |
|
$ |
3,440 |
|
$ |
7,942 |
|
| |
|
September
30,
2020 |
|
December
31,
2019 |
|
| |
|
|
|
|
|
| Weighted Average
Remaining Lease Term |
|
|
|
|
|
| Operating
leases |
|
1.6
Years |
|
2.4
Years |
|
| Finance
leases |
|
1
Year |
|
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 |
|
| 2020
(excluding the nine months ended September 30, 2020) |
|
$ |
37,922 |
|
$ |
832 |
|
| 2021 |
|
|
149,476 |
|
|
2,705 |
|
| 2022 |
|
|
97,256 |
|
|
— |
|
| 2023 |
|
|
— |
|
|
— |
|
| 2024 |
|
|
— |
|
|
— |
|
| 2025 |
|
|
— |
|
|
— |
|
| Thereafter |
|
|
— |
|
|
— |
|
| Total undiscounted
lease payments |
|
|
284,654 |
|
|
3,537 |
|
| Less:
imputed interest |
|
|
(12,975 |
) |
|
(97 |
) |
| Total lease liabilities |
|
$ |
271,679 |
|
$ |
3,440 |
|
|