XML 249 R15.htm IDEA: XBRL DOCUMENT
v3.21.1

Leases | 12 Months Ended
--- | ---
Dec. 31, 2019
Leases [Abstract] |
Leases | 7. Leases The Company adopted a comprehensive new lease accounting standard effective January 1, 2019 using the modified retrospective transition method; accordingly, the comparative information for the year ended December 31, 2018 has not been adjusted and continues to be reported under the previous lease standard. The Company elected the package of practical expedients under the new lease standards, which includes (i) not reassessing whether any expired or existing contracts are or contain a lease, (ii) not reassessing lease classification for any expired or existing leases, (iii) not reassessing initial direct costs for any existing leases, and (iv) account for a lease and non-lease component as a single component for certain classes of assets. The Company will not adopt the practical expedient to use hindsight in determining the lease term. Adoption of the new standard resulted in recording operating lease right-of-use assets and operating lease liabilities of $3,980,649 and $4,819,606, respectively, on the consolidated balance sheets as of December 31, 2019. The adoption of the standard was immaterial and did not result in an impact as of January 1, 2019. The standard did not have a material impact on the consolidated statements of operations or consolidated statements of cash flows. The Company’s lease arrangements for its offices expire at various dates through 2027. Security deposits under letters of credit or cash deposited with banks were $160,910 as of December 31, 2019. Substantially all of the leases are long-term operating leases for facilities with fixed payment terms between 1.4 and 7.9 years. The current portion of operating lease liabilities are presented within accrued and other current liabilities, and the non-current portion of operating lease liabilities are presented under operating lease liabilities on the consolidated balance sheets. Lease Cost The operating lease costs were $1,112,362 for the year ended December 31, 2019. For the year ended December 31, 2018, total operating lease expense under the previous lease standard was $253,651. Lease Term and Discount Rate The weighted-average remaining lease term (in years) and discount rate related to the operating leases consisted of the following as of December 31, 2019:
Weighted-average remaining lease term |  |  | 5.03 years |
Weighted-average discount rate |  |  | 9.85 | %
As most of the Company’s leases do not provide an implicit rate, the Company is required to use its incremental borrowing rate. The Company uses an incremental borrowing rate based on the information available at the lease commencement date to determine present value of lease payments. The incremental borrowing rate used is the rate the Company would have to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Maturity of Lease Liabilities The present value of the Company’s operating leases consisted of the following as of December 31, 2019:
Year Ending December 31, |  |  |
2020 |  | $ | 2,579,924 |
2021 |  |  | 685,111 |
2022 |  |  | 472,084 |
2023 |  |  | 486,247 |
2024 |  |  | 500,834 |
Thereafter |  |  | 1,408,052 |
Minimum lease payments |  |  | 6,132,252 |
Less imputed interest |  |  | (1,312,646 | )
Present value of operating lease liabilities |  | $ | 4,819,606 |
Current portion included in accrued expenses and other (lease liabilities) |  | $ | 2,203,474 |
Long-term portion of operating lease liabilities |  |  | 2,616,132 |
Total operating lease liabilities |  | $ | 4,819,606 |
Other Information Cash payments included in the measurement of the Company operating lease liabilities were approximately $1,212,800 for the year ended December 31, 2019. Lease liabilities arising from obtaining lease right-of-use assets were approximately $3,853,500 for the year ended December 31, 2019. Prior to January 1, 2019, the Company accounted for its operating leases under the provisions of ASC 840, Accounting for Leases (“ASC 840”). The following table summarizes future minimum operating lease payments as of December 31, 2018 (prior to the adoption of ASC 842):
Year ending December 31, |  |  |
2019 |  | $ | 505,621 |
2020 |  |  | 347,845 |
2021 |  |  | 226,817 |
|  | $ | 1,080,283 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration