Quarterly report pursuant to Section 13 or 15(d)

OPERATING LEASE LIABILITY

v3.21.2
OPERATING LEASE LIABILITY
6 Months Ended
Jun. 30, 2021
Disclosure Text Block [Abstract]  
Lessee, Operating Leases [Text Block]

NOTE 8 OPERATING LEASE LIABILITY

 

The Company leases office space in ten different locations with monthly payments ranging from $655 to $9,617 which expire at various dates through March 2025. The Company also leases equipment with a monthly payment of $10,279 which expires February 2024.

 

The Company's leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. The Company used incremental borrowing rates as of January 1, 2019 for operating leases that commenced prior to that date.

 

The Company's weighted average remaining lease term and weighted average discount rate for operating leases as of June 30, 2021 are as follows:

 

   

June 30, 2021

   

December 31, 2020

 

Weighted average remaining lease term

    2.87       2.93  

Weighted average discount rate

    4.77

%

    4.77

%

 

The following table reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total lease liabilities recognized on the unaudited condensed consolidated balance sheet as of June 30, 2021:

 

Remainder 2021

  $ 296,764  

2022

    499,849  

2023

    356,844  

2024

    141,457  

2025

    20,510  

Total undiscounted future minimum lease payments

    1,315,424  

Less: Difference between undiscounted lease payments and discounted lease liabilities

    (80,092

)

Total operating lease liabilities

    1,235,332  

Less current portion

    (515,550

)

Long-term operating lease liabilities

  $ 719,782  

 

Total rent expense under for the three and six months ended June 30, 2021 was $157,509 and $319,323, respectively, as compared to $134,485 and $263,270 for the three and six months ended June 30, 2020, respectively.