Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Sep. 30, 2019
Leases [Abstract]  

Note 12 – Leases


The Company’s corporate offices are within leased facilities. The Company doesn’t have any other office or equipment leases subject to the recently adopted ASU 2016-02. This real property lease contains a one-time renewal option for an additional 36 months. In the locations in which it is economically feasible to continue to operate, management expects that lease options will be exercised. The office lease contains provisions requiring payment of property taxes, utilities, insurance, maintenance and other occupancy costs applicable to the leased premise. As the Company’s lease does not provide an implicit discount rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments.


The components of lease expense were as follows:


    For the Nine  
    Months Ended  
    September 30, 2019  
Finance lease cost:        
Amortization of assets   $ 30,184  
Interest on lease liabilities     13,510  
Total lease cost   $ 43,694  


Supplemental balance sheet information related to leases were as follows:


    September 30, 2019  
Finance lease:        
Right-of-use asset   $ 278,725  
Accumulated amortization     (30,184 )
Right-of-use asset, net   $ 248,541  
Current portion of finance lease liability   $ 39,622  
Long-term finance lease liability     212,167  
Total finance lease liability   $ 251,789  
Weighted average remaining lease term:        
Operating leases     N/A  
Finance leases     5.1 years  
Weighted average discount rate:        
Operating leases     N/A  
Finance leases     6.75 %


Supplemental cash flow and other information related to leases was as follows:


    For the Nine  
    Months Ended  
    September 30, 2019  
Cash paid for amounts included in the measurement of lease liabilities:        
Operating cash flows used for finance leases   $ 40,446  
Leased assets obtained in exchange for lease liabilities:        
Total operating lease liabilities   $ -  
Total finance lease liabilities   $ 251,789  


The Company’s maturities of lease liabilities under finance leases as of September 30, 2019 are as follows:


2019   $ 13,892  
2020     55,824  
2021     57,498  
2022     59,223  
2023     61,000  
Thereafter     51,957  
Total     299,394  
Less interest     47,605  
Present value of lease liabilities     251,789  
Less current portion     39,622  
Long-term lease liabilities   $ 212,167  


There were no operating leases as of September 30, 2019.