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Leases

3 Months Ended

Mar. 31, 2020

12.

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 May 1, 2019, the Company entered into a lease agreement for 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. We have been notified that, due to the coronavirus outbreak, Telecom Infrastructure Corp. is currently unable to make its monthly payments under the sublease agreement, and such payments ceased being made in March 2020. We are currently in discussions with Telecom Infrastructure Corp. concerning its nonpayment and we are exploring all remedies available to us.

As of March 31, 2020, the Company had no long-term leases that were classified as a financing lease. As of March 31, 2020, the Company did not have additional operating and financing leases that have not yet commenced.

At March 31, 2020, the Company had operating lease liabilities of approximately $0.7 million and right of use assets of approximately $0.6 million, which are included in the condensed consolidated balance sheet.

Total rent expense for the three months ended March 31, 2020 was $61,895, of which $36,095 was sublease income, and $81,816 for the three months ended March 31, 2019. Rent expense is recorded in general and administrative expense on the condensed consolidated statements of operations.

The following table summarizes the Company's operating leases:

	Three Months Ended
	March 31,
	2020			2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	38,529		$	48,692
Weighted average assumptions:
Remaining lease term		2.9			2.1
Discount rate		2.5	%		3.6	%

On March 31, 2020, future minimum payments under non-cancelable operating leases were as follows:

For the years ending December 31,	Amount
2020	$	286,944
2021		382,237
2022		304,101
2023		102,418
Total	$	1,075,700
Less: present value adjustment		(352,800	)
Present value of minimum lease payments	$	722,900