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Operating Lease | 3 Months Ended
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Mar. 31, 2020
Leases [Abstract] |
Operating Lease | NOTE 7. OPERATING LEASE The Company entered into an operating lease with a third party in September 2012 for office and warehouse space in Lenexa, Kansas. The terms of the lease include monthly payments ranging from $38,026 to $38,533 with a maturity date of April 2020. The Company has the option to renew for an additional three years beyond the original expiration date, which may be exercised at the Company’s sole discretion. The Company evaluated the renewal option at the lease commencement date to determine if it is reasonably certain the exercise the option and concluded that it is not reasonably certain that any options will be exercised. The weighted average remaining lease term for the Company’s office and warehouse operating lease as of March 31, 2020 was one month. The Company has entered into a lease for new office and warehouse space: See NOTE 13. SUBSEQUENT EVENTS. The Company entered into an operating lease with a third party in October 2019 for copiers used for office and warehouse purposes. The terms of the lease include 48 monthly payments of $1,598 with a maturity date of October 2023. The Company has the option to Purchase the equipment at maturity for its estimated fair market value at that point in time. The remaining lease term for the Company’s copier operating lease as of March 31, 2020 was 43 months. Lease expense related to the office space and copier operating leases were recorded on a straight-line basis over their respective lease terms. Total lease expense under the two operating leases was $98,836 for the three months ended March 31, 2020. The discount rate implicit within the Company’s operating leases was not generally determinable and therefore the Company determined the discount rate based on its incremental borrowing rate on the information available at commencement date. As of commencement date, the operating lease liabilities reflect a weighted average discount rate of 8%. The following sets forth the operating lease right of use assets and liabilities as of March 31, 2020:
Assets: |  |  |
Operating lease right of use assets |  | $ | 94,449 |
Liabilities: |  |  |  |
Operating lease obligations-current portion |  | $ | 49,828 |
Operating lease obligations-less current portion |  | $ | 44,620 |
Total operating lease obligations |  | $ | 94,448 |
The components of lease expense were as follows for the three months ended March 31, 2020:
Selling, general and administrative expenses |  | $ | 98,836 |
Following are the minimum lease payments for each year and in total.
Year ending December 31: |  |  |
2020 |  | $ | 52,915 |
2021 |  |  | 19,176 |
2022 |  |  | 19,176 |
2023 |  |  | 15,980 |
Total undiscounted minimum future lease payments |  |  | 107,247 |
Imputed interest |  |  | (12,799 | )
Total operating lease liability |  | $ | 94,448 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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