The Company has various lease agreements with terms up to 10 years, comprising of leases of office space. Some leases include options to purchase, terminate or extend for one or more years. These options are included in the lease term when it is reasonably certain that the option will be exercised.

The assets and liabilities from operating and finance leases are recognized at the commencement date based on the present value of remaining lease payments over the lease term using the Company’s secured incremental borrowing rates or implicit rates, when readily determinable. Short-term leases, which have an initial term of 12 months or less, are not recorded on the balance sheet.

The Company’s operating leases do not provide an implicit rate that can readily be determined. Therefore, we use a discount rate based on our incremental borrowing rate, which is determined using the interest rate of our long-term debt as of January 1, 2019.

The Company’s weighted-average remaining lease term relating to its operating leases is 6.65 years, with a weighted-average discount rate of 6.74%.

The Company incurred lease expense for its operating leases of $223,927 which was included in “General and administrative expenses,” for the year ended December 31, 2019.

The Company had operating cash flows used in operating leases of $185,540 for the year ended December 31, 2019. Right-of-use assets obtained in exchange for new operating lease liabilities $673,844 for the year ended December 31, 2019.

The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s operating leases as of December 31, 2019.

Maturity of Lease Liability
2020	$	167,694
2021		83,144
2022		53,890
2023		53,890
Thereafter		255,976
Total undiscounted finance lease payments	$	614,593
Less: Imputed interest		122,013
Present value of finance lease liabilities	$	492,580

The Company’s weighted-average remaining lease term relating to its finance leases is 2.87 years, with a weighted-average discount rate of 6.66%.

The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s finance leases as of December 31, 2019.

Maturity of Lease Liability
2019	$	65,556
2020		44,373
2021		26,472
2022		14,685
2023		4,126
Thereafter		-
Total undiscounted finance lease payments	$	155,212
Less: Imputed interest		14,504
Present value of finance lease liabilities	$	140,708

The Company had financing cash flows used in finances leases of $74,476 for the year ended December 31, 2019.

The Company incurred interest expense on its finance leases of $10,927 which was included in “Interest expense,” for the year ended December 31, 2019. The Company incurred amortization expense on its finance leases of $160,542 which was included in “Depreciation and amortization expense,” for the year ended December 31, 2019.