Operating Lease Liabilities

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

OPERATING LEASE LIABILITIES

Note 10. OPERATING LEASE LIABILITIES

The Company leases substantially all of its office space, technology equipment and office equipment used to conduct its business. The Company adopted ASC 842 effective January 1, 2019. For contracts entered into on or after the effective date, at the inception of a contract it assesses whether the contract is, or contains, a lease. The Company's assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether its obtains the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether it has the right to direct the use of the asset. At inception of a lease, the Company allocates the consideration in the contract to each lease component based on its relative stand-alone price to determine the lease payments. Leases entered into prior to January 1, 2019, are accounted for under ASC 840 and were not reassessed.

The aggregate undiscounted cash flows of operating lease payments, with remaining terms greater than one year are as follows:

For the twelve months ended	Amount
December 31, 2020	$	1,136,000
December 31, 2021		1,118,000
December 31, 2022		868,000
December 31, 2023		895,000
December 31, 2024		923,000
Thereafter		1,681,000
Total future minimum lease payments		6,621,000
Less: discount		(1,689,000	)
Total operating lease maturities		4,932,000
Less: current portion of operating lease liabilities		(697,000	)
Total long term portion of operating lease liabilities	$	4,235,000

As part of the effort to reduce costs, corporate executive offices were moved to an existing 5.4-acre corporate campus in Bay Shore, New York. The Company remains liable under the lease for the office in Hauppauge, New York which is now vacant. This lease has a term which ends January 2022. The annual rent was approximately $113,000 for the lease year which began in January 2019 and increases by approximately 3% per annum each year thereafter. Accordingly, the Company recognized an impairment of $275,000 to its Operating Lease Right-of-Use-Asset for the year ended December 31, 2019.