Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

NOTE 8. LEASES

The Company determines whether a contract is a lease, or contains a lease, at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. The Company discounts lease payments based on an estimate of its incremental borrowing rate as the Company’s leases do not provide a readily determinable implicit rate.

The Company leases certain facilities in Texas, Utah and Dubai under long-term operating leases with lease terms of one year to two years. Effective January 1, 2020, the Company adopted the provision of ASC 842 Leases.

The table below presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheet as of September 30, 2020:

	Classification on Balance Sheet	September 30, 2020
Assets
Operating lease assets	Operating lease right of use assets	$	146,450
Total lease assets		$	146,450
Liabilities
Current liabilities
Operating lease liability	Current operating lease liability	$	108,104
Noncurrrent liabilities
Operating lease liability	Long-term operating lease liability		38,346
Total lease liability		$	146,450

The lease expense and the cash paid under operating leases for the three and nine months ended September 30, 2020 was $26,827 and $141,817, respectively. At September 30, 2020, the weighted average remaining lease terms were 1.84 years and the weighted average discount rate was 7.25%.

The following is the aggregate future lease payments for operating leases as of September 30, 2020:

2020 (remaining)	$	26,827
2021		90,042
2022		23,304
2023		16,104
Total undiscounted lease payments		156,277
Less: effects of discounting		(9,827	)
Present value of lease payments	$	146,450