LEASES

9 Months Ended

Sep. 30, 2021

LEASES

LEASES

13. LEASES

The Company has operating leases for its office facilities and artwork storages. The Company’s leases have remaining terms of less than one year to approximately six years. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes.

The following table provides a summary of leases by balance sheet location as of September 30, 2021:

		As of
		September 30,
Assets/liabilities	Classification	2021
Assets		(Unaudited)
Operating lease right-of-use assets	Operating lease assets	$	130,073
Liabilities
Current
Operating lease liability - current	Current operating lease liabilities	$	76,719
Long-term
Operating lease liability - non-current	Long-term operating lease liabilities		41,714
Total lease liabilities		$	118,433

The operating lease expenses for the three months and nine months ended September 30, 2021 and 2020 were as follows:

		Three Months Ended September 30,				Nine Months Ended September 30,
Lease Cost	Classification	2021			2020	2021			2020
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Operating lease cost	Cost of revenue, general and administrative expenses	$	127,173	$	72,901	$	294,399	$	466,419
Total lease cost		$	127,173	$	72,901	$	294,399	$	466,419

Maturities of operating lease liabilities at September 30, 2021 were as follows:

	Operating
Maturity of Lease Liabilities	Leases
2021 (remaining)	$	17,065
2022		80,663
2023		15,520
2024		15,520
2025		—
Thereafter		—
Total lease payments	$	128,768
Less: interest		(10,335)
Present value of lease payments	$	118,433

	Nine Months Ended
	September 30,
Lease Term and Discount Rate	2021		2020
	(Unaudited)		(Unaudited)
Weighted-average remaining lease term (years)
Operating leases	2.1		2.8
Weighted-average discount rate (%)
Operating leases	8	%	8	%

	Nine Months Ended
	September 30,
Other Information	2021		2020
	(Unaudited)		(Unaudited)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	49,651	$	208,198
Leased assets obtained in exchange for new operating lease liabilities		—		—