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LEASES | 9 Months Ended
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Sep. 30, 2022
LEASES [Abstract] |
LEASES |
Note 17 | LEASES
Operating Leases The Company accounts for leases in accordance with ASC Topic 842, Leases (“ASC 842”). All contracts are evaluated to determine whether or not they represent a lease. A lease conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company has operating leases primarily consisting of facilities with remaining lease terms of one year to five years. The lease term represents the period up to the early termination date unless it is reasonably certain that the Company will not exercise the early termination option. Certain leases include rental payments that are adjusted periodically based on changes in consumer price and other indices. Leases are classified as finance or operating in accordance with the guidance in ASC 842. The Company does not hold any finance leases. The Company is obligated under operating lease agreements for office facilities in (i) Florida, (ii) Washington, (iii) Colorado and (iv) Argentina that expire in (i) December 2024, (ii) December 2022, (iii) February 2026 and (iv) July 2024, respectively. The Company also has two short-term leases related to offices in Pennsylvania and Massachusetts. These short-term leases are currently leased on a month-to-month basis. A short-term lease is a lease with a term of 12 months or less and does not include the option to purchase the underlying asset that we would expect to exercise. The Company has elected to adopt the short-term lease exemption in ASC 842 and as such have not recognized a “right of use” asset or lease liability for these short-term leases. The Company’s lease agreements generally do not provide an implicit borrowing rate, therefore an internal incremental borrowing rate is determined based on information available at lease commencement date for purposes of determining the present value of lease payments. Supplemental cash flow information and non-cash activity related to leases for the nine months ended September 30, 2022 and 2021 were as follows:
|  | For the Nine Months Ended September 30, |
|  | 2022 |  |  | 2021 |
Cash used in operating leases |  | $ | 236,832 |  |  | $ | 211,077 |
ROU assets obtained in exchange for new operating lease liabilities |  | $ | 39,791 |  |  | $ | 1,082,684 |
ROU lease assets and lease liabilities for the Company’s operating leases were recorded in the condensed consolidated balance sheet as follows:
|  | September 30, 2022 |  |  | December 31, 2021 |
Right of use assets, net |  | $ | 706,272 |  |  | $ | 859,637 |
Short-term operating lease liabilities |  | $ | 265,474 |  |  | $ | 247,325 |
Long-term operating lease liabilities |  |  | 444,996 |  |  |  | 611,523 |
Total lease liabilities |  | $ | 710,470 |  |  | $ | 858,848 |
Weighted average remaining lease term (in years) |  |  | 2.60 |  |  |  | 3.32 |
Weighted average discount rate |  |  | 8.5% |  |  |  | 8.5% |
The components of lease expense were as follows for each of the periods presented:
|  | For the Three Months Ended September 30, |  |  | For the Nine Months Ended September 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Operating lease expense |  | $ | 84,262 |  |  | $ | 81,936 |  |  | $ | 241,824 |  |  | $ | 191,182 |
Short-term lease expense |  | $ | 55,965 |  |  | $ | 19,393 |  |  | $ | 174,374 |  |  | $ | 62,916 |
Total operating lease costs |  | $ | 140,227 |  |  | $ | 101,329 |  |  | $ | 416,198 |  |  | $ | 254,098 |
Future lease payments included in the measurement of lease liabilities on the condensed consolidated balance sheet as of September 30, 2022, for the following five fiscal years and thereafter were as follows:
|  | September 30, 2022 |
2022 (Remaining) |  | $ | 82,598 |
2023 |  |  | 308,594 |
2024 |  |  | 302,123 |
2025 |  |  | 85,726 |
2026 |  |  | 14,287 |
Total future minimum lease payments |  | $ | 793,328 |
Less imputed interest |  |  | (82,858 | )
Total |  | $ | 710,470 |

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- 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 https://asc.fasb.org/subtopic&trid=77888251 + Details
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