Note 11. Commitments and Contingencies

Lease Commitments

We have operating leases for our office space. Our leases have remaining lease terms of less than one year to 6 years, some of which include options to indefinitely extend the leases monthly. For our month to month leases, we determined the number of renewal periods we are reasonably certain to exercise and include these periods in our right of use asset and lease liability calculations. Lease expense was $487,850 and $970,398 for the three and six months ended June 30, 2019, respectively, and is included in general and administrative expense in the condensed consolidated statement of comprehensive loss. Lease expense was $39,393 and $81,506 for the three and six months ended June 30, 2018.


Operating Leases:	June 30, 2019

Operating lease right-of-use assets	$	2,493,352
Operating lease liabilities	$	2,790,685

Weighted average remaining lease term
Operating leases		1.9	years

Incremental borrowing rate
Operating leases		8.8	%

The following represents maturities of operating lease liabilities as of June 30, 2019:


Remainder of 2019	$	975,453
2020		1,716,284
2021		119,059
2022		62,387
2023		62,387
Thereafter		98,779
Total lease payments	$	3,034,349
Less: imputed interest		(243,664)
Lease liabilities, current		1,776,900
Lease liabilities, non-current		1,013,785
Total	$	2,790,685

Legal Proceedings

Ellenoff Grossman & Schole LLP, claimed legal fees.

On May 5, 2017, the Company’s former legal counsel, Ellenoff Grossman & Schole LLP, commenced litigation proceedings in New York alleging breach of contract and claiming $817,822 in unpaid legal fees for January 2015 through November 2016. On June 29, 2017, the parties entered into a settlement agreement for the full $817,822 with agreed-upon monthly installment payments through August 31, 2019. As of June 30, 2019, this transaction is reflected in the financial statements.

The Company is involved in various claims and lawsuits incidental to our business. In the opinion of management, the ultimate resolution of such claims and lawsuits will not have a material effect on our financial position, liquidity, or results of operations.