Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Operating Leases

The table below summarizes the components of lease expense and income statement location for the year ended December 31, 2019:

	Line Item in the Company’s Consolidated Statements of Operations	Year Ended December 31, 2019
Finance lease costs:
Amortization of assets	Depreciation and amortization	$	24,675
Interest on lease liabilities	Other expense, net	6,832
Total finance lease costs		$	31,507
Operating lease costs	General and administrative expenses	$	3,005,124
Total lease costs		$	3,036,631

Supplemental information and balance sheet location related to leases is as follows:

	December 31, 2019
Operating Leases:
Operating lease right-of -use asset	$	12,486,672
Operating lease liability - current portion	2,313,109
Operating lease liability - net of current portion	11,901,040
Total operating lease liability	$	14,214,149
Finance Leases:
Property and equipment, at cost	80,604
Less accumulated amortization	(24,675)
Property and equipment, net	$	55,929
Finance lease liability - current portion	24,253
Finance lease liability - net of current portion	34,398
Total finance lease liabilities	$	58,651
Weighted average remaining lease term (in years):
Operating leases	5.4
Finance lease	2.3
Weighted average discount rate:
Operating leases	8.7		%
Finance leases	10.0		%

Supplemental cash flow information related to leases is as follows:

	Year Ended December 31, 2019
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	$	2,834,903
Operating cash flows from finance leases	6,832
Financing cash flows from finance leases	21,954
Non-cash transactions: ROU assets obtained in exchange for lease liabilities
Operating lease	$	1,350,090
Finance lease	80,604

Maturities of lease liabilities as of December 31, 2019 are as follows:

	Operating Leases		Finance Lease
2020	$	3,376,830	$	28,786
2021	3,545,186		28,786
2022	3,430,110		7,676
2023	2,716,465		—
2024	2,096,333		—
Thereafter	2,629,450		—
Total lease payments	17,794,374		65,248
Less: Imputed interest	(3,580,225)		(6,597)
Total lease obligations	14,214,149		58,651
Less: Current obligations	(2,313,109)		(24,253)
Long-term lease obligation	$	11,901,040	$	34,398

The future minimum obligations under operating leases in effect as of December 31, 2018 having a noncancelable term in excess of one year as determined prior to the adoption of ASC 842 are as follows:

	Operating Leases
2020	$	2,630,443
2021	2,406,645
2022	2,299,887
2023	2,195,077
2024	1,474,396
Thereafter	2,772,575
Total	$	13,779,023

Total rent expense for the years ended December 31, 2019 and 2018 was $3,381,825 and $2,844,010, respectively.

During the fourth quarter of 2019, the Company entered into various operating leases for its new corporate clinics' space that have not yet commenced. These leases are expected to result in additional ROU asset and liability of approximately $1.3 million. These leases are expected to commence during the first quarter of 2020, with a lease term of five to ten years.

Litigation

In the normal course of business, the Company is party to litigation from time to time. The Company maintains insurance to cover certain actions and believes that resolution of such litigation will not have a material adverse effect on the Company.