Note 7‑ Leases

Successor

The Company leases facilities under agreements classified as operating leases that expire in 2023 and 2024. The Company’s leases include renewal options; however, renewal options have not been included in the calculation of the lease liabilities and right of use assets as the Company is not reasonably certain to exercise the options. Leases with an initial term of 12 months or less are not recorded on the balance sheet and expense is recognized on a straight-line basis over the lease term. The Company does not act as a lessor or have any leases classified as financing leases.

At December 31, 2020 and 2019, the Company had operating lease liabilities of approximately $0.3 million and $0.2 million, respectively and right of use assets of approximately $0.3 million and $0.2 million, respectively.

Lease expenses during the year ended December 31, 2020 and the period October 4, 2019 through December 31, 2019 is as follows:


	Successor
	Year Ended		October 4, 2019
	December 31,		through
	2020		December 31, 2019
Operating leases
Operating lease cost	$	89,500	$	12,750
Operating lease expense		89,500		12,750
Short-term lease rent expense		78,574		18,418
Total rent expense	$	168,074	$	31,168

The weighted-average remaining lease term as of December 31, 2020 is 2.93 years. The weighted-average discount rate is 5%.

Supplemental cash flow information related to the Company’s leases is as follows:


	Successor
	Year Ended		October 4, 2019
	December 31,		through
	2020		December 31, 2019
Operating leases
Operating cash flows from operating leases	$	89,500	$	12,750

The maturity of the Company's operating leases are as follows:


2021	$	93,000
2022		93,000
2023		54,500
2024		38,250
2025		—
Thereafter		—
Total		278,750
Less: Interest		(20,227)
Present value of lease liabilities	$	258,523

Predecessor

Rent expense during the period January 1, 2019 through October 3, 2019 was approximately $0.04 million.