XML 36 R16.htm IDEA: XBRL DOCUMENT

Leases

9 Months Ended

Sep. 30, 2019

10.

Leases

Operating Leases

On June 7, 2016, the Company entered into a lease agreement with Jericho Executive Center LLC for office space at 30 Jericho Executive Plaza in Jericho, New York, which commenced on September 1, 2016 and runs through November 30, 2021. The Company's monthly office rent payments under the lease are currently approximately $5,900 per month.

On September 18, 2017, the Company entered into a lease agreement for a second office space located at 122 East 42nd Street in New York, NY that expired on July 31, 2019 and paid a security deposit in the amount of $8,000. The Company's monthly office rent payments under the lease were approximately $4,000 per month.

On May 1, 2019, the Company entered into a lease agreement for an additional office space located at 122 East 42nd Street in New York, NY and paid a $133,968 security deposit in the form of a letter of credit. The term of the lease runs until April 26, 2023. The Company's monthly office rent payments under the lease are currently approximately $33,492 per month.

On May 1, 2019, the Company entered into a sublease agreement with Telecom Infrastructure Corp. for office space located at 122 East 42nd Street in New York, NY, pursuant to which Telecom Infrastructure Corp. is required to pay the Company $11,164 per month. The term of the sublease runs until April 26, 2023.

As of September 30, 2019, the Company had no long-term leases that were classified as financing leases. As of September 30, 2019, the Company did not have additional operating and financing leases that have not yet commenced.

The Company recognizes right-of-use ("ROU") assets and lease liabilities when it enters into a lease agreement. The Company evaluates the nature of each lease at the inception of an arrangement to determine whether it is an operating or financing lease and recognizes the ROU asset and lease liabilities based on the present value of future minimum lease payments over the expected lease term. The Company's leases do not generally contain an implicit interest rate and therefore the Company uses the incremental borrowing rate it would expect to pay to borrow on a similar collateralized basis over a similar term in order to determine the present value of its lease payments.

Total operating lease expense for the nine months ended September 30, 2019 was $309,537 and is recorded in general and administrative expense on the unaudited condensed statements of operations.

The following table summarizes the Company's operating and financing leases as of and for the nine months ended September 30, 2019:

	Nine Months Ended
	September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	564,914
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	712,299
Weighted average remaining lease term
Operating leases		3.4
Weighted average discount rate
Operating leases		2.5	%