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Leases
 9 Months Ended 12 Months Ended
Sep. 30, 2020
Dec. 31, 2019
Leases [Abstract]    
Leases

NOTE 12. LEASES

 

Operating Leases

 

The Company adopted ASU 2016-02, Leases, effective January 1, 2019. The standard requires a lessee to record a right-of-use asset and a corresponding lease liability at the inception of the lease, initially measured at the present value of the lease payments. As a result, we recorded right-of-use assets aggregating $684,083 as of January 1, 2019, utilizing a discount rate of 7.45%. That amount consists of operating leases on buildings and office space.

 

ASU 2016-02 requires recognition in the statement of operations of a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. As of September 30, 2020, the Company reflected accumulated amortization of right of use assets of $295,187 related to these leases, resulting in a net asset balance of $487,595.

 

In accordance with ASU 2016-02, the right-of-use assets are being amortized over the life of the underlying leases.

 

As of September 30, 2020, the weighted average remaining lease term for the operating leases is 2.79 years. The weighted average discount rate for the operating leases is 7.45%.

 

Future minimum lease payment under these operating leases consisted of the following:

 

Year ending September 30,   Operating Lease Obligations  
2020 (remaining three months)   $ 63,779  
2021     203,023  
2022     164,660  
2023     85,440  
2024     32,082  
Total undiscounted operating lease payments     548,984  
Less: Imputed interest     (55,196 )
Present value of operating lease liabilities   $ 493,788  

NOTE 12. LEASES

 

Operating Leases

 

The Company adopted ASU 2016-02, Leases, effective January 1, 2019. The standard requires a lessee to record a right-of-use asset and a corresponding lease liability at the inception of the lease, initially measured at the present value of the lease payments. As a result, we recorded right-of-use assets aggregating $684,083 as of January 1, 2019, utilizing a discount rate of 7.45%. That amount consists of operating leases on buildings and office space.

 

ASU 2016-02 requires recognition in the statement of operations of a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. As of December 31, 2019, the Company reflected accumulated amortization of right of use assets of $114,433 related to these leases, resulting in a net asset balance of $569,650.

 

In accordance with ASU 2016-02, the right-of-use assets are being amortized over the life of the underlying leases.

 

As of December 31, 2019, the weighted average remaining lease term for the operating leases is 3.42 years. The weighted average discount rate for the operating leases is 7.45%.

 

Future minimum lease payment under these operating leases consisted of the following:

 

Year ending December 31,   Operating Lease Obligations  
2020   $ 224,096  
2021     172,363  
2022     144,000  
2023     81,000  
2024     33,000  
Thereafter     -  
Total undiscounted operating lease payments     654,459  
Less: Imputed interest     78,931  
Present value of operating lease liabilities   $ 575,528