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LEASES
 6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
LEASES

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.