Quarterly report pursuant to Section 13 or 15(d)

Leases

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Leases
9 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Leases

Note 10 – Leases

 

We lease our office space under an operating lease agreement. This lease does not have significant rent escalation, concessions, leasehold improvement incentives, or other build-out clauses. Further, the lease does not contain contingent rent provisions. We also lease office equipment under an operating lease. Our office space lease includes both lease (e.g., fixed payments including rent, taxes, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs), which are accounted for as a single lease component as we have elected the practical expedient to group lease and non-lease components for all leases. Our leases do not provide an implicit rate and, as such, we have used our incremental borrowing rate of 8% in determining the present value of the lease payments based on the information available at the lease commencement date.

 

Lease costs included in our condensed consolidated statement of operations totaled $24,029 and $24,319 for the three months ended September 30, 2020 and 2019, respectively, and $72,230 and $73,621 for the nine months ended September 30, 2020 and 2019, respectively. The weighted average remaining lease terms and discount rate for our operating leases were as follows at September 30, 2020:

 

Weighted average remaining lease term (years) for our facility and equipment leases     2  
Weighted average discount rate for our facility and equipment leases     8.00 %

 

Maturities of our lease liabilities for all operating leases were as follows as of September 30, 2020:

 

2020   $ 22,416  
2021     90,495  
2022     69,741  
Total lease payments     182,652  
Less: Interest     (16,151 )
Present value of lease liabilities     166,501  
Less: current maturities     (79,765 )
Non-current lease liability   $ 86,736