Leases

9 Months Ended

Sep. 30, 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.

	Nine Months Ended September 30,
	2020			2019
Operating lease costs	$	196,291		$	112,180
Short-term operating lease costs		27,666			6,593
Financing lease expense:
Amortization of right-of-use assets		3,682			—
Interest on lease liabilities		1,194			—
Total financing lease expense		4,876			—
Total lease expense	$	228,833		$	118,773
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	$	16,524		$	—
Weighted-average remaining lease term (years) - operating leases		14.3			7.0
Weighted-average remaining lease term (years) - financing leases		3.3			—
Weighted-average discount rate - operating leases		6.75	%		6.75	%
Weighted-average discount rate - financing leases		8.82	%		—

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

	Operating			Financing
2020 (excluding the nine months ended September 30, 2020)	$	63,139		$	2,410
2021		257,383			9,641
2022		284,631			9,641
2023		287,108			5,880
2024		287,108			2,929
Thereafter		2,886,518			—
Total minimum operating lease obligations		4,065,887			30,501
Less-amounts representing interest		(1,475,494	)		(3,991	)
Present value of minimum operating lease obligations		2,590,393			26,510
Current maturities		(83,862	)		(7,608	)
Lease obligations, net of current maturities	$	2,506,531		$	18,902