Annual report pursuant to Section 13 and 15(d)

Leases

v3.20.4
Leases
12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases Leases
The Company has entered into operating and finance leases primarily for real estate and equipment rental. These leases have
terms ranging from two to four years, and often include one or more options to renew or in the case of equipment rental, to
purchase the equipment. These operating and finance leases are listed as separate line items on the Company's December 31, 2020 and 2019 consolidated balance sheets and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligations to make lease payments are also listed as a separate line items on the Company's December 31, 2020 and 2019 consolidated balance sheets. Based on the present value of the lease payments for the remaining lease term of the Company's existing leases, the Company recognized right-of-use assets and lease liabilities for operating leases of approximately $1.2 million and finance leases of approximately $265,000, respectively, on January 1, 2019. Operating lease right-of-use assets and liabilities commencing after January 1, 2019 are recognized at commencement date based on the present value of lease payments over the lease term. As of December 31, 2020, total operating and financed right-of-use assets were $606,573 and $395,910, respectively. As of December 31, 2019, total operating and financed right-of-use assets were $756,115 and $88,178, respectively. As of December 31, 2019 the Company has entered into a short-term finance lease for equipment with a remaining term of twelve months or less and is included in the "Accrued expense and other current liabilities" section of the 2019 consolidated balance sheet. All operating lease expense is recognized on a straight-line basis over the lease term.

For the years-ended December 31, 2020 and 2019, the Company recorded $367,981 and $177,193 in amortization expense related to finance leases.

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to
determine the present value of the lease payments.

Information related to the Company's operating lease liabilities for are as follows:

December 31, 2020
Cash paid for operating lease liabilities $ 362,366 
Weighted-average remaining lease term 2.2 years
Weighted-average discount rate 6.25  %

December 31, 2019
Cash paid for operating lease liabilities
$ 451,107 
Weighted-average remaining lease term
2.0 years
Weighted-average discount rate
6.25 %
Minimum future lease payments ended December 31, 2020
2021 249,417 
2022 246,527 
2023 163,965 
659,909 
Less imputed interest (53,336)
Total lease liabilities $ 606,573 

Information related to the Company's financed lease liabilities are as follows:

December 31, 2020
Cash paid for finance lease liabilities $ 589,504 
Weighted-average remaining lease term 2.3 years
Weighted-average discount rate 6.25  %
December 31, 2019
Cash paid for finance lease liabilities
$ 270,312 
Weighted-average remaining lease term
Less than one year
Weighted-average discount rate
6.25 %
Minimum future lease payments ended December 31, 2020
2021 260,970 
2022 66,691 
2023 31,366 
359,027 
Less imputed interest (18,808)
Total lease liabilities $ 340,219 
Leases Leases
The Company has entered into operating and finance leases primarily for real estate and equipment rental. These leases have
terms ranging from two to four years, and often include one or more options to renew or in the case of equipment rental, to
purchase the equipment. These operating and finance leases are listed as separate line items on the Company's December 31, 2020 and 2019 consolidated balance sheets and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligations to make lease payments are also listed as a separate line items on the Company's December 31, 2020 and 2019 consolidated balance sheets. Based on the present value of the lease payments for the remaining lease term of the Company's existing leases, the Company recognized right-of-use assets and lease liabilities for operating leases of approximately $1.2 million and finance leases of approximately $265,000, respectively, on January 1, 2019. Operating lease right-of-use assets and liabilities commencing after January 1, 2019 are recognized at commencement date based on the present value of lease payments over the lease term. As of December 31, 2020, total operating and financed right-of-use assets were $606,573 and $395,910, respectively. As of December 31, 2019, total operating and financed right-of-use assets were $756,115 and $88,178, respectively. As of December 31, 2019 the Company has entered into a short-term finance lease for equipment with a remaining term of twelve months or less and is included in the "Accrued expense and other current liabilities" section of the 2019 consolidated balance sheet. All operating lease expense is recognized on a straight-line basis over the lease term.

For the years-ended December 31, 2020 and 2019, the Company recorded $367,981 and $177,193 in amortization expense related to finance leases.

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to
determine the present value of the lease payments.

Information related to the Company's operating lease liabilities for are as follows:

December 31, 2020
Cash paid for operating lease liabilities $ 362,366 
Weighted-average remaining lease term 2.2 years
Weighted-average discount rate 6.25  %

December 31, 2019
Cash paid for operating lease liabilities
$ 451,107 
Weighted-average remaining lease term
2.0 years
Weighted-average discount rate
6.25 %
Minimum future lease payments ended December 31, 2020
2021 249,417 
2022 246,527 
2023 163,965 
659,909 
Less imputed interest (53,336)
Total lease liabilities $ 606,573 

Information related to the Company's financed lease liabilities are as follows:

December 31, 2020
Cash paid for finance lease liabilities $ 589,504 
Weighted-average remaining lease term 2.3 years
Weighted-average discount rate 6.25  %
December 31, 2019
Cash paid for finance lease liabilities
$ 270,312 
Weighted-average remaining lease term
Less than one year
Weighted-average discount rate
6.25 %
Minimum future lease payments ended December 31, 2020
2021 260,970 
2022 66,691 
2023 31,366 
359,027 
Less imputed interest (18,808)
Total lease liabilities $ 340,219