Note 8. 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.

The lease for the Company’s office space located at 10999 McCormick Road, Hunt Valley, Maryland, had been scheduled to end in July 2020. In November 2019, the Company entered into an amendment to the lease agreement to extend the lease term to July 31, 2023. Under the terms of this amendment, the base rental rate during the extended lease term ranges from $40,498 to $42,971 per month.

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


		Three Months Ended
		December 29, 2019
Operating lease expense	$	736,500

		As of December 29, 2019
Maturities of discounted lease liabilities by fiscal year are as follow:
2020	$	759,900
2021		3,119,400
2022		3,157,800
2023		3,010,400
2024		2,715,400
Thereafter		4,592,300
Total		17,355,200
Less: present value discount		(2,706,300)
Present value of lease liabilities	$	14,648,900

Weighted-average discount rate:
Operating leases		4.0%