XML 32 R21.htm IDEA: XBRL DOCUMENT
v3.19.1

COMMITMENTS AND CONTINGENCIES | 3 Months Ended
--- | ---
Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS AND CONTINGENCIES | NOTE 15 – COMMITMENTS AND CONTINGENCIES We adopted ASC 842 effective January 1, 2019. Substantially all our operating lease right-of-use assets and operating lease liabilities represent leases for office space used to conduct our business. Upon adoption, we have recognized a right-of-use asset and a lease liability for all leases that have commenced as of January 1, 2019. The right-of-use assets represent the right to use the leased asset for the lease term. The lease liabilities represent the present value of the lease payments under the lease. The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, less any lease incentives received. All right-of-use assets are reviewed for impairment. The lease liability is initially measured at the present value of the lease payments, discounted using our secured incremental borrowing rate for the same term as the underlying lease because the rates are not implicit in the leases. Some of our leases contain variable lease payments, including payments based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement. Additional payments based on the change in an index or rate, or payments based on a change in our portion of the operating expenses are recorded as a period expense when incurred. Lease modifications result in remeasurement of the lease liability. Included in lease expense are any variable lease payments incurred in the period that were not included in the initial lease liability. We lease administrative office space in Boca Raton, Florida pursuant to a non-cancelable operating lease that commenced on July 1, 2013 and originally provided for a 63-month term. On February 18, 2015, we entered into an agreement with the same lessors to lease additional administrative office space in the same location, pursuant to an addendum to such lease. In addition, on April 26, 2016, we entered into an agreement with the same lessors to lease additional administrative office space in the same location. This agreement was effective beginning May 1, 2016 and extended the original expiration of the lease term to October 31, 2021. On October 4, 2016, we entered into an agreement with the same lessors to lease additional administrative office space in the same location, pursuant to an addendum to such lease. This addendum is effective beginning November 1, 2016. In October 2018, we entered into a lease for new corporate offices in Boca Raton, Florida. The lease includes 56,212 rentable square feet, or the full premises, of which lease on 7,561 square feet has commenced in 2018 and the lease on the remaining 48,651 square feet will commence no earlier than June 1, 2019, or the full premises commencement date. The lease will expire 11 years after full premises commencement date, unless terminated earlier in accordance with the terms of the lease. We have the option to extend the term of the lease for two additional consecutive periods of five years. The extension option is not included in the determination of the lease term as it is not reasonably certain to be exercised. The term of the lease includes escalating rent and free rent periods. We are also responsible for certain other operating costs under the lease, including electricity and utility expenses. In addition, we will be entitled to reimbursement from the landlord of up to $1,800,000 for tenant improvements.
Supplemental lease information at March 31, 2019: |  |  |
Right of use asset |  | $ | 3,540,407 |
Short-term operating lease liability |  | $ | 1,158,286 |
Long-term operating lease liability |  | $ | 2,724,501 |
Weighted average remaining term |  |  | 5.3 years |
Weighted average discount rate |  |  | 8.25 | %
Supplemental cash flow information: |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities for operating lease |  | $ | 279,742 |
Right-of-use assets obtained in exchange for lease obligation |  | $ | 3,760,171 |
The following table reconciles the undiscounted cash flows for all operating leases at March 31, 2019 to the operating lease liabilities recorded on the balance sheet:
Years Ending December 31, |  |  |  |
2019 (9 months) |  |  | $ | 879,998 |
2020 |  |  |  | 1,292,914 |
2021 |  |  |  | 1,135,467 |
2022 |  |  |  | 172,651 |
2023 |  |  |  | 176,968 |
Thereafter |  |  |  | 1,228,504 |
Total undiscounted lease payments |  |  |  | 4,886,502 |
Less: Imputed interest |  |  |  | (1,003,715 | )
Present value of lease payments |  |  | $ | 3,882,787 |
As of March 31, 2019, we estimated fixed future minimum rental commitments of approximately $11.6 million and estimated variable future minimum rental commitments of approximately $5.7 million over the term of the lease related to the operating lease for the new corporate office that we entered into in October 2018 that had not commenced yet, as disclosed above. During the three months ended March 31, 2019, operating lease expense was $295,109 and variable lease expense was $11,786 related to our real estate leases. Rent expense totaled $257,301 during the three months ended March 31, 2018.

X
- References No definition available. + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -URI http://asc.fasb.org/topic&trid=2127136 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration