Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

(10)        Leases

The Company leases office and warehouse space under operating leases. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments under the lease. Operating lease, right-of-use assets, and liabilities are recognized at the lease commencement date based on the present value of lease payments over the reasonably certain lease term. The implicit rates with the Company’s operating leases are generally not determinable and the Company uses its incremental borrowing rate at the lease commencement date to determine the present value of its lease payments. The determination of the Company’s incremental borrowing rate requires judgement. The company determines its incremental borrowing rate for each lease using its then-current borrowing rate. Certain of the Company’s leases include options to extend or terminate the lease. The Company establishes the number of renewal options periods used in determining the operating lease term based upon its assessment at the inception of the operating lease. The option to renew the lease may be automatic, at the option of the Company, or mutually agreed to between the landlord and the Company. Once the facility lease term has begun, the present value of the aggregate future minimum lease payments is recorded as a right-of-use asset. Lease expense is recognized on a straight-line basis over the term of the lease.

	Three Months Ended March 31,
	2020			2019
Operating lease costs	$	68,400		$	36,853
Short-term operating lease costs		8,876			1,902
Financing lease expense:
Amortization of right-of-use assets		577			—
Interest on lease liabilities		222			—
Total financing lease expense		799
Total lease expense	$	78,075		$	38,755
Right-of-use assets obtained in exchange for new operating lease liabilities	$	2,649,070		$	810,367
Right-of-use assets obtained in exchange for new financing lease liabilities	$	—		$	—
Weighted-average remaining lease term (years) - operating leases		14.8			7.0
Weighted-average remaining lease term (years) - financing leases		4.7
Weighted-average discount rate - operating leases		6.75	%		6.75	%
Weighted-average discount rate - financing leases		6.75	%

The future minimum payments under these operating lease agreements are as follows:

	Operating			Financing
2020 (excluding the three months ended March 31, 2020)	$	198,091		$	2,397
2021		257,383			3,195
2022		284,631			3,195
2023		287,108			3,195
2024		287,108			2,929
Thereafter		2,886,518			—
Total minimum operating lease obligations		4,200,839			14,911
Less-amounts representing interest		(1,563,909	)		(2,151	)
Present value of minimum operating lease obligations		2,636,930			12,760
Current maturities		(87,158	)		(2,407	)
Lease obligations, net of current maturities	$	2,549,772		$	10,353