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LEASES

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

4.	LEASES

The Company leases a building and equipment. Under ASC 842, at contract inception we determine whether the contract is or contains a lease and whether the lease should be classified as an operating or a financing lease. Operating leases are included in ROU assets and operating lease liabilities in our consolidated balance sheets.

The Company leases manufacturing and office space under an agreement classified as an operating lease.

The lease agreement expires on April 30, 2022 and does not include any renewal options. The agreement provides for an initial monthly base amount plus annual escalations through the term of the lease.

In addition to the monthly base amounts in the lease agreement, the Company is required to pay real estate taxes and operating expenses during the lease terms.

The Company also leases office equipment in agreements classified as operating leases.

For the three and six months ended June 30, 2019, the Company’s operating lease expense was $439,825 and $878,154, respectively.

Future minimum lease payments under non-cancellable operating leases as of June 30, 2019 were as follows:

Twelve months ending June 30,
2020		$	1,899,753
2021			1,942,915
2022			1,645,566
2023			73,405
2024			13,128
Thereafter			1,785
Total undiscounted operating lease payments			5,576,552
Less imputed interest			(474,537	)
Present value of operating lease payments		$	5,102,015

The following table sets forth the ROU assets and operating lease liabilities as of June 30, 2019:

Assets
ROU Assets		$	4,626,916

Liabilities
Current operating lease liabilities		$	1,637,869
Long-term operating lease liabilities			3,464,146
Total ROU liabilities		$	5,102,015

The Company’s weighted average remaining lease term for its operating leases is 2.6 years.