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LEASES

6 Months Ended

Jun. 30, 2021

The Company has various lease agreements with terms up to 10 years, comprising 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 on the date of inception.

The Company’s weighted-average remaining lease term relating to its operating leases is 6.71 years, with a weighted-average discount rate of 6.74%.

The Company incurred lease expense for its operating leases of $99,610 and $104,588 which was included in “General and administrative expenses,” for the six months ended June 30, 2021 and 2020, respectively.

The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s operating leases as of June 30, 2021.

Maturity of Lease Liability
Remainder of 2021	$	115,368
2022		228,112
2023		203,409
2024		118,978
2025		114,856
Thereafter		431,790
Total undiscounted operating lease payments	$	1,212,513
Less: Imputed interest		(243,054	)
Present value of operating lease liabilities	$	969,459

The Company’s weighted-average remaining lease term relating to its finance leases is 2.7 years, with a weighted-average discount rate of 6.74%.

The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s finance leases as of June 30, 2021.

Maturity of Lease Liability
Remainder of 2021	$	51,377
2022		86,663
2023		74,113
2024		55,762
2025		24,823
Thereafter		589
Total undiscounted finance lease payments	$	293,327
Less: Imputed interest		(32,302	)
Present value of finance lease liabilities	$	261,025

The Company had operating cash flows used in finances leases of $4,453 and $2,301 for the six months ended June 30, 2021 and 2020, respectively.

The Company incurred interest expense on its finance leases of $5,250 which was included in “Interest expense,” for the six months ended June 30, 2021. The Company incurred amortization expense on its finance leases of $49,267 which was included in “Depreciation and amortization expense,” for the six months ended June 30, 2021.