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Commitment and Contingencies | 6 Months Ended
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Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract] |
Commitment and Contingencies | Note 20: Commitment and Contingencies Effective January 1, 2019, the Company adopted ASC 842, Leases, using the modified retrospective transition method applied at the effective date of the standard. As of January 1, 2019, management recorded lease liability of $2,071,903, right-of-use asset of $2,153,747, accumulated amortization of $124,070, a reversal of previously recorded deferred rent of $37,920 and the increase in accumulated deficit of $4,306. As of June 30, 2021, weighted-average lease term for operating leases equals to 72.72 months. Weighted-average discount rate equals to 9.86%. On February 6, 2018, the Company entered into an operating lease for 6,969 square feet of general office space at 131 South Rodeo Drive, Suite 250, Beverly Hills, CA 90212 pursuant to a 91-month lease that commenced on May 25, 2018. The Company pays rent of $364,130 annually, subject to annual escalations of 3.5%. Effective January 21, 2019, the Company entered into a sublease for the 6,969 square feet of general office space located at 131 South Rodeo Drive, Suite 250, Beverly Hills, CA 90212 pursuant to an 83-month sublease that commenced on February 4, 2019. The subtenant paid the Company rent of $422,321 annually, subject to annual escalations of 3.5%. On September 11, 2020, the Company entered into a Surrender Agreement with the landlord which terminated the 131 South Rodeo Dr. lease agreement. As a result, the Company recorded a decrease in the Right of Use asset, accumulated amortization, and the lease liability of $2,142,863, $465,124 and $1,760,302 respectively. The termination of the lease resulted in a loss of $338,586. Simultaneously, as part of the Surrender Agreement the Sublease was terminated. On January 30, 2019, the Company entered into an operating lease for 5,838 square feet of general office space at 190 N. Canon Drive, Suite 400, Beverly Hills, CA 90210 pursuant to a 96-month lease that commenced on August 1, 2019. The Company pays rent of $392,316 annually, subject to annual escalations of 3.5%. On February 1, 2021, as part of the Acquisition, the Company assumed an operating lease that was entered into on May 19, 2019 for 6,845 square feet of general office space located at 245 Fairview Mall Drive, Suites 202 and 301, Toronto, Ontario M2J 4T1 pursuant to a 84 month lease which commenced on October 1, 2019. The Company pays rent of $95,830 annually, subject to annual escalations 5% to 7%. On February 1, 2021, as part of the Acquisition, the Company assumed an operating lease that entered into on April 30, 2019 for 3,379 square feet of general office space located at One International Boulevard, 11th Floor, Mahawh, New Jersey pursuant to a 24-month lease which commenced on May 1, 2019. The Company pays rent of $74,338 annually. On March 2, 2021, the Company entered into an operating lease for 4,765 square feet of general office space located at 1050 Wall Street West, Suite 665, Lyndhurst NJ, 07071 pursuant to an 89-month lease which is expected to commence on August 1, 2021. The Company will pay $114,360 annually subject to annual escalations of 2.5%. In addition, the Company has contractual commitments for employment agreements of certain employees. Rental expenses incurred for operating leases during the three months ended June 30, 2021 and June 30, 2020 were $131,403 and $207,839, respectively. Rental expenses incurred for operating leases during the six months ended June 30, 2021 and June 30, 2020 were $243,746 and $415,678, respectively. During the six months ended June 30, 2021, the Company did not receive sub-lease income. During the six months ended June 30, 2020, the Company received sub-lease income of $238,484. The following is a schedule of future minimum contractual obligations as of June 30, 2021, under the Company’s operating leases and employment agreements:
Schedule of future minimum lease payments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2021 |  |  | 2022 |  |  | 2023 |  |  | 2024 |  |  | 2025 |  |  | Thereafter |  |  | Total |
Operating Leases |  | $ | 227,931 |  |  | $ | 572,896 |  |  | $ | 556,152 |  |  | $ | 578,180 |  |  | $ | 596,844 |  |  | $ | 896,766 |  |  | $ | 3,428,769 |
Employment Contracts |  |  | 1,544,508 |  |  |  | 2,932,027 |  |  |  | 2,236,788 |  |  |  | 1,105,566 |  |  |  | 506,583 |  |  |  | – |  |  |  | 8,325,472 |
Consulting Contracts |  |  | 150,000 |  |  |  | 187,500 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 337,500 |
|  | $ | 1,922,439 |  |  | $ | 3,692,423 |  |  | $ | 2,792,940 |  |  | $ | 1,683,746 |  |  | $ | 1,103,427 |  |  | $ | 896,766 |  |  | $ | 12,091,741 |

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