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Operating Leases

12 Months Ended

Dec. 31, 2019

Operating Leases - Schedule Of Maturities Of Lease Liabilities

NOTE 9 - OPERATING LEASES

At December 31, 2019, the Company has operating lease agreements for three office spaces with remaining lease terms of 16 to 30 months. The Company does not have any other leases with initial term of 12 months or more. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company accounts for the lease and non-lease components of its leases as a single lease component. Lease expense is recognized on a straight-line basis over the lease term.

Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Generally, the implicit rate of interest (“discount rate”) in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The operating lease ROU asset includes any lease payments made and excludes lease incentives.

The components of lease expense and supplemental cash flow information related to leases for the period are as follows:

	Year Ended December 31, 2019
Lease Cost
Operating lease cost (included in general and administrative expenses in the Company’s statement of operations)	$	326,662

Other Information
Cash paid for amounts included in the measurement of lease liabilities for the year ended December 31, 2019	$	321,906
Weighted average remaining lease term – operating leases (in years)		1.7
Average discount rate – operating leases		4.0	%

The supplemental balance sheet information related to leases for the period is as follows:

	At December 31, 2019
Operating leases
Long-term right-of-use assets	$	506,924

Short-term operating lease liabilities	$	318,914
Long-term operating lease liabilities		192,778
Total operating lease liabilities	$	511,692

Maturities of the Company’s lease liabilities are as follows (in thousands):

Year Ending December 31,	Operating Leases
2020	$	345,450
2021		161,574
2022		34,564
Total lease payments		541,588
Less: Imputed interest		(29,896	)
Present value of lease liabilities	$	511,692

Lease expenses were $401,553 and $386,359 during the years ended December 31, 2019 and 2018, respectively.