Note 7. Leases

The Company leases certain office spaces and equipment. Leases with an initial term of twelve months or less are not recorded on the balance sheet. The Company’s leases include rental payments adjusted for inflation. The right-of-use lease asset and lease liability are recorded on our Consolidated Balance Sheet.

The lease for the Company’s office space located at 375 West Padonia Road, Timonium, Maryland, 21093, and which includes approximately 102,164 rentable square feet, had been scheduled to end in December 2020. In July 2019, the Company entered into an amendment to the lease agreement to extend the lease term to December 15, 2025. Under the terms of this amendment, the base rental rate during the extended lease term ranges from $200,071 to $220,841 per month.

Quantitative information regarding the Company’s leases is as follows:


		Three Months Ended
		September 29, 2019
Operating lease expense	$	852,200

		As of September 29, 2019
Maturities of discounted lease liabilities by fiscal year are as follow:
2020	$	1,526,663
2021		2,795,426
2022		2,661,758
2023		2,499,629
2024		2,543,508
Thereafter		4,592,305
Total		16,619,289
Less: present value discount		(2,739,389)
Present value of lease liabilities	$	13,879,900

Weighted-average discount rate:
Operating leases		4.0%