On adoption of ASU No. 2016-02 “Leases”, and subsequently ASU No. 2017-13, the Company recognized $332,512 and $295,188 as right of use assets and obligations, respectively at January 1, 2019. These amounts relate to two operating leases for premises existing as at January 1, 2019, with a further premises operating lease added in March 2019. The Company has applied the exemption to treat short-term leases as executory contracts as well as applied the practical expedient to choose not to separate non-lease components from lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component. During the year ended December 31, 2019, the Company incurred total operating lease expenses of $369,263; this included lease expenses associated with fixed lease payments of $285,890 and variable lease payments of $83,373.

Lease expense is allocated to operating segments based on the location of the leases, as follows:

	2019		2018
Anesthesia services expense	$	118,943	$	74,265
Product sales expense		125,160		108,985
Corporate expense		125,160		108,985
	$	369,263	$	292,235

The weighted average lease term of the Company’s three premises leases is 1.30 years. The weighted average discount rate used by the Company in calculating the obligation relating to right of use assets is based on the Company’s Credit Facility, which is disclosed in note 11.

The following table presents a maturity analysis of the Company’s undiscounted lease obligations for each of the next five years, reconciled to the obligation as recorded on the balance sheet.

	Undiscounted lease payments
2020	$	129,680
2021		55,498
	$	185,178
Accretion related to outstanding lease obligations		(5,323	)
Total	$	179,855
Current obligation relating to right of use assets	$	125,555
Long-term obligation relating to right of use assets	$	54,300
Total	$	179,855