Note 6 - Leases

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note 6– Leases:

We have various noncancelable lease agreements for office and warehouse space, as well as office equipment, with original remaining lease terms of two years to nine years, some of which include an option to extend the lease term for up to five years. Because the Company is not reasonably certain to exercise these renewal options, the options are not considered in determining the lease term and associated potential option payments are excluded from lease payments. The Company’s leases generally do not include termination options for either party to the lease or restrictive financial or other covenants.

Weighted-average remaining lease term (in years) and discount rate related to operating leases were as follows:

Weighted-average remaining lease term	5.68
Weighted-average discount rate	6.06	%

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date to determine the present value of lease payments.

Maturities of lease liabilities under noncancelable operating leases as of June 30, 2020 were as follows:

	June 30,
	2020
2020 (a)		915,072
2021		1,863,254
2022		1,811,907
2023		1,802,007
2024		1,511,214
2025 and beyond		2,786,004
Total lease payments		10,689,458
Less: Imputed interest		(1,495,932	)
Present value of lease liabilities	$	9,193,526

(a) Excluding the six months ended June 30, 2020.

A summary of rent expense for the three and six months ended June 30, 2020 and 2019 was as follows:

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Operating lease cost	$	458,838	$	444,333	$	910,993	$	701,215

Supplemental cash flow information and non-cash activity relating to operating leases are as follows:

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$	445,310	$	380,046	$	849,458	$	626,781