6. Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

6. LEASES

The Company has entered into operating leases primarily for real estate. These leases have terms which range from three years to five years, and often include one or more options to renew or in the case of equipment rental, to purchase the equipment. These operating leases are listed as separate line items on the Company's Consolidated Balance Sheet and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are also listed as separate line items on the Company's Consolidated Balance Sheet.

Operating lease ROU assets and liabilities commencing after January 1, 2019 are recognized at commencement date based on the present value of lease payments over the lease term. Based on the present value of the lease payments for the remaining lease term of the Company's existing leases, the Company recognized ROU assets and lease liabilities for operating leases of approximately $938,884 in assets and $955,487 in liabilities as of September 30, 2019. In the nine months ended September 30, 2019, the Company recognized approximately $281,322 in total lease costs.

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments.

Information related to the Company's operating right-of-use assets and related lease liabilities were as follows:

	Nine Months Ended September 30, 2019
Cash paid for operating lease liabilities	$	264,519
Weighted-average remaining lease term (in years)		3.6
Weighted-average discount rate		10%
Minimum future lease payments	$	1,170,089

The following table presents the Company’s future minimum lease obligation under ASC 840 as of September 30 2019:
2019	85,318
2020	352,888
2021	367,636
2022	335,659
2023	28,589