Note 14 - Commitments and Contingencies

Operating Leases

The Company is obligated under non-cancellable lease agreements for certain facilities and services, which frequently include renewal options and escalation clauses. For leases that contain predetermined fixed escalations, we recognize the related rent expense on a straight-line basis and record the difference between the recognized rent expense and amounts payable under the lease as lease obligations. Lease obligations due within one year are included in accounts payable and accrued expenses on our Consolidated Balance Sheets. These leases expire at various points through 2031.

Rent expense related to these leases was $480,301 and $113,210 for the three months ended March 31, 2020 and 2019, respectively. The Company does not record rent expense for its Connecticut office as it is included under the Management Agreement with CSS

Future minimum payments under non-cancelable operating lease agreements as of March 31, 2020 were as follows:



Remainder of 2020		4,461,984
2021		7,136,682
2022		4,011,272
2023		1,269,773
2024		1,295,168
2025 - 2031		8,862,909
Total minimum lease payments	$	27,037,788

Legal and Other Matters

We are not presently a party to any legal proceedings the resolution of which we believe would have a material adverse effect on our business, financial condition, operating results, or cash flows. However, legal proceedings are subject to inherent uncertainties, and an unfavorable outcome could include monetary damages, and excessive verdicts can result from litigation, and as such, could result in a material adverse impact on our business, financial position, results of operations, and /or cash flows. Additionally, although we have specific insurance for certain potential risks, we may in the future incur judgments or enter into settlements of claims which may have a material adverse impact on our business, financial position, results of operations, and /or cash flows.