5. LEASE

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

LEASE

5.     LEASE

The Company entered into an operating lease for an office space which became effective in June 2020 when the construction was complete and we were given access to occupy the space. The lease term is 10 years from the effective date and allows for two optional extensions of five years each. The two optional extensions are not recognized as part of the right-of-use asset or lease liability since it is not reasonably certain that the Company will extend this lease. As of December 31, 2020, the remaining lease term was 10 years and the discount rate was 6%. The lease for our previous office space was accounted for as a short-term lease.

Operating lease cost included in selling, general and administrative expenses was $489,104 for the year ended December 31, 2020. Short-term lease cost included in selling, general and administrative expense was $94,906 and $223,847 for the year ended December 31, 2020 and 2019, respectively.

The following is the lease maturity analysis of our operating lease as of December 31, 2020:

Twelve months ending December 31,

2021	$	571,968
2022		571,968
2023		571,968
2024		571,968
2025		612,006
Thereafter		2,829,335
Total lease payments		5,729,213
Less: Imputed interest		1,394,979
Present value of future lease payments		4,334,234
Less: current portion of lease liability		(320,636	)
Long-term portion of lease liability	$	4,013,598