NOTE 6 – LEASES

The Company has thirty-two operating leases for manufacturing facilities and offices. Some leases include one or more options to renew, which is typically at the Company's sole discretion. The majority of renewals to extend the lease terms are not included in our right of use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates the renewal options, and, when it is reasonably certain of exercise, it will include the renewal period in its lease term. New lease modifications result in remeasurement of the right of use asset and lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Effective April 1, 2019, the Company adopted the new lease accounting standard using a modified retrospective transition method which allowed the Company to continue to apply the guidance under the lease standard in effect at the beginning of period of adoption through a cumulative-effect adjustment. In addition, the Company elected the package of practical expedients, which allowed us to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company has also elected the practical expedient to not separate the lease and non-lease components for all classes of underlying assets. Adoption of this standard resulted in the recording of operating lease Right of Use ("ROU") assets and corresponding operating lease liabilities as disclosed below and had no impact on accumulated deficit as of June 30, 2019. Financial position for reporting periods beginning on or after March 31, 2019 is presented under the new guidance, while prior period amounts are retrospectively adjusted.

All of the Company’s leases are classified as operating leases and primarily include office space and manufacturing facilities. Operating lease ROU assets are presented within other assets-net on the unaudited condensed consolidated balance sheet. The current portion of operating lease liabilities are presented within accrued expenses and other payables, and the non-current portion of operating lease liabilities are presented within other long-term liabilities on the unaudited condensed consolidated balance sheet.

Supplemental balance sheet information related to operating leases was as follows:


	June 30, 2019
	(unaudited)
Right-of-use assets	$	1,292,416

Operating lease liabilities - current	$	262,075
Operating lease liabilities - non-current		592,245
Total operating lease liabilities	$	854,320

The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of June 30, 2019:


Remaining lease term and discount rate:
Weighted average remaining lease term (years)	3.6

Weighted average discount rate	4.06	%

During the three months ended June 30, 2019 and 2018, the Company incurred total operating lease expenses of $542,785 and $342,343, respectively.

The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2019:


2020	$	373,261
2021		375,908
2022		272,551
2023		211,560
2024		158,670
Thereafter		—
Total lease payments		1,391,950
Less: imputed interest		(99,534)
Less: prepayments		(438,096)
Present value of lease liabilities	$	854,320