Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

9. Leases

The Company has various lease agreements in place for facilities and equipment. Terms of these leases include, in some instances, scheduled rent increases, renewals, purchase options and maintenance costs, and vary by lease. These lease obligations expire at various dates through 2023. As the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate based on information available at commencement to determine the present value of the lease payments. Based on the present value of the lease payments for the remaining lease term of the Company’s existing leases, the Company recognized right-of-use assets of $920,805, lease liabilities of $1,110,445, and a net adjustment to retained earnings of $187,353 upon adoption on January 1, 2019. Right-of-use assets and lease liabilities commencing after January 1, 2019 are recognized at commencement date based on the present value of lease payments over the lease term. As of September 30, 2019, the right-of-use assets and lease liabilities were $899,483 and $1,050,339, respectively. Leases with an initial term of 12 months or less (“short-term leases”) are not recorded on the balance sheet and are recognized on a straight-line basis over the lease term. Aggregate lease expense for the nine months ended September 30, 2019 was $570,762, consisting of $465,414 in lease expense for lease liabilities recorded on the Company’s balance sheet and $105,348 in short-term lease expense.

Maturities of lease liabilities as of September 30, 2019 are as follows:

	Operating Leases			Weighted-Average Remaining Term in Years
2019	$	182,643
2020		553,832
2021		304,068
2022		41,407
Thereafter		38,564
Total lease payments		1,120,513
Less imputed interest (based on 6.3% weighted- average discount rate		(70,174	)
Present value of lease liability	$	1,050,339			2.0