9. LEASES

The Company has operating leases for a corporate office and equipment. The leases have remaining lease terms of one to two years. The Company currently has no finance leases. The ROU asset is determined based on the lease liability adjusted for lease incentives received. Lease expense is recognized on a straight-line basis over the lease term. The leases may include various expenses incidental to the use of the property, such as common area maintenance, property taxes and insurance. These costs are separate from the minimum rent payment and are not considered in the determination of the lease liability and ROU asset. The Company has not noted any material instances in its leases where these costs were combined with the minimum rent payment and has therefore elected the policy to not separate lease from non-lease components if they are combined with the minimum rent payment. The option periods are not included in the determination of the lease liability and right-of-use asset as the Company is not reasonably certain if it will extend at the time of lease commencement.

The operating lease cost component of the lease expense was $20,264 and $60,175 for the three and nine months ended September 30, 2019. The cash paid for amounts included in the measurement of lease liabilities as a component of cash flows related to leases was $20,264 and $60,175 for the three and nine months ended September 30, 2019.

Assets and liabilities associated with these leases included in the Balance Sheets are as follows:


	September 30, 2019		December 31, 2018
OPERATING LEASES
Other assets	$	102,832	$	163,007
Other accrued liabilities	$	81,933	$	80,648
Other long-term liabilities		20,899		82,359
Total operating lease liabilities	$	102,832	$	163,007

The weighted average remaining lease term is 1.24 years and the weighted average discount rate is 4.02%.

Future minimum payments under non-cancelable operating leases and financing leases consist of the following at September 30, 2019:


Year ending December 31,
Remainder of 2019	$	21,436
2020		84,155
Total		105,591

Less imputed interest		(2,759)
Total	$	102,832