| 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:
| |
|
For
the
Three Months Ended |
|
For
the
Six Months Ended |
|
| |
|
June
30, |
|
June
30, |
|
| |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating
lease cost |
|
$ |
37,921 |
|
$ |
37,921 |
|
$ |
75,843 |
|
$ |
73,750 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance
lease cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization
of right-of-use assets |
|
$ |
1,855 |
|
$ |
1,061 |
|
$ |
3,711 |
|
$ |
2,121 |
|
| Interest
on lease liabilities |
|
|
65 |
|
|
59 |
|
|
152 |
|
|
131 |
|
| Total finance lease cost |
|
$ |
1,920 |
|
$ |
1,120 |
|
$ |
3,863 |
|
$ |
2,252 |
|
Supplemental cash flow information
related to leases was as follows:
| |
|
For
the
Three Months Ended |
|
For
the
Six Months Ended |
|
| |
|
June
30, |
|
June
30, |
|
| |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash
paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance
cash flows from finance leases |
|
$ |
1,869 |
|
$ |
1,041 |
|
$ |
3,717 |
|
$ |
2,069 |
|
| Finance
lease cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization
of right-of-use assets |
|
$ |
1,855 |
|
$ |
1,061 |
|
$ |
3,711 |
|
$ |
2,121 |
|
| Interest
on lease liabilities |
|
|
65 |
|
|
59 |
|
|
152 |
|
|
131 |
|
| Total finance lease cost |
|
$ |
1,920 |
|
$ |
1,120 |
|
$ |
3,863 |
|
$ |
2,252 |
|
Supplemental balance sheet
information related to leases was as follows:
| |
|
For
the
Six Months Ended |
|
| |
|
June
30, |
|
| |
|
2020 |
|
|
2019 |
|
| |
|
|
|
|
|
|
|
|
| Operating
Leases |
|
|
|
|
|
|
|
|
| Operating
lease right-of-use assets |
|
$ |
306,101 |
|
|
$ |
439,782 |
|
| |
|
|
|
|
|
|
|
|
| Operating
lease current liabilities |
|
|
139,618 |
|
|
|
133,417 |
|
| Operating
lease long term liabilities |
|
|
166,483 |
|
|
|
306,365 |
|
| Total
operating lease liabilities |
|
$ |
306,101 |
|
|
$ |
439,782 |
|
| |
|
|
|
|
|
|
|
|
| Finance
Leases |
|
|
|
|
|
|
|
|
| Property
and equipment, at cost |
|
$ |
12,725 |
|
|
$ |
6,363 |
|
| Accumulated
depreciation |
|
|
(8,549 |
) |
|
|
(2,121 |
) |
| Property
and equipment, net |
|
$ |
4,176 |
|
|
$ |
4,242 |
|
| |
|
|
|
|
|
|
|
|
| Finance
lease current liabilities |
|
|
3,195 |
|
|
|
4,295 |
|
| Finance
lease long term liabilities |
|
|
1,030 |
|
|
|
— |
|
| Total
finance lease liabilities |
|
$ |
4,225 |
|
|
$ |
4,295 |
|
| |
|
Six
Months Ended
June 30, 2020 |
|
Six
Months Ended
June 30, 2019 |
|
| Weighted Average
Remaining Lease Term |
|
|
|
|
|
| Operating
leases |
|
2
Years |
|
3
Years |
|
| Finance
leases |
|
1
Year |
|
1
Year |
|
| |
|
|
|
|
|
| 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 |
|
|
75,843 |
|
|
1,664 |
|
| 2021 |
|
|
149,476 |
|
|
2,705 |
|
| 2022 |
|
|
97,256 |
|
|
— |
|
| Total lease payments |
|
|
322,575 |
|
|
4,369 |
|
| Less
imputed interest |
|
|
(16,474 |
) |
|
(144 |
) |
| Total |
|
$ |
306,101 |
|
$ |
4,225 |
|
|