11. LEASES

The Company has operating leases for a warehouse and equipment. The leases have a remaining lease term of less than one year. 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 $12,843 for the three-month period ended March 31, 2021. The cash paid for amounts included in the measurement of lease liabilities as a component of cash flows related to leases was $12,843 for the three months ended March 31, 2021. The operating lease cost component of the lease expense was $20,283 at March 31, 2020. The cash paid for amounts included in the measurement of lease liabilities as a component of cash flows related to leases was $20,283 for the three months ended March 31, 2020.

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


	March 31, 2021		December 31, 2020
OPERATING LEASES
Other assets	$	26,049	$	38,892
Other accrued liabilities	$	26,049	$	38,892
Other long-term liabilities		—		—
Total operating lease liabilities	$	26,049	$	38,892

The weighted average remaining lease term is 6 months and the weighted average discount rate is 3.75%.

Future minimum payments under non-cancelable operating leases and financing leases consist of the following at March 31, 2021:


Quarter ending March 31, 2021	$	26,335
Less imputed interest		(286)
Total	$	26,049