Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.21.1
Leases
3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Leases
7. LEASES

 

OPERATING LEASES

 

As of March 31, 2021, the Company had no leases that were classified as a financing lease. As of March 31, 2021, the Company did not have additional operating and financing leases that have not yet commenced.

 

Total operating lease expenses for the three months ended March 31, 2021 and 2020 were $169,678 and $113,599, respectively, and are recorded in other operating expenses on the condensed consolidated statements of operations.

 

During the three months ended March 31, 2021, the Company entered into a lease for approximately 27,540 square feet of space in Arizona. The lease commenced on January 1, 2021 and will terminate on May 31, 2028. The lease also includes a build-out allowance of $137,000. Monthly payments under the lease, net of buildout allowance, is $18,235 per month. The lease also includes a security deposit of $22,032.

 

Supplemental cash flows information related to leases was as follows:

 

    For The Three Months Ended  
    March 31,  
    2021     2020  
Cash paid for amounts included in the measurement of lease liabilities:                
Operating cash flows from operating leases   $ 169,126     $ 52,743  
                 
Right-of-use assets obtained in exchange for lease obligations:                
Operating leases   $ 1,358,408     $ -  
                 
Weighted Average Remaining Lease Term                
Operating leases     5.96       1.41  
                 
Weighted Average Discount Rate                
Operating leases     4.9 %     6.0 %

 

Future minimum payments under non-cancellable leases as of March 31, 2021 were as follows:

 

For the Years Ending December 31,   Amount  
       
2021   $ 385,831  
2022     468,138  
2023     291,546  
2024     218,818  
2025     218,818  
Thereafter     528,810  
Total future minimum lease payments     2,111,961  
Less: imputed interest     (139,198 )
Total   $ 1,972,763