Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

We have an operating lease for our corporate offices in Canada and finance leases for furniture and equipment. Our leases have remaining lease terms of seven months to forty-one months, and our primary operating leases include options to extend the leases for four years. Future renewal options that are not likely to be executed as of the balance sheet date are excluded from right-of-use assets and related lease liabilities.

We report operating leased assets, as well as operating lease current and noncurrent obligations on our balance sheets for the right to use the building in our business. Our finance leases represent furniture and office equipment; we report the furniture and equipment, as well as finance lease current and noncurrent obligations on our balance sheet.

Generally, interest rates are stated in our leases for equipment. When no interest rate is stated in a lease, however, we review the interest rates implicit in our recent finance leases to estimate our incremental borrowing rate. We determine the rate implicit in a lease by using the most recent finance lease rate, or other method we think most closely represents our incremental borrowing rate.

The components of lease expense were as follows:

	Three Months Ended March 31, 2020	Three Months Ended March 31, 2019
Operating lease cost	$9,707	$5,653
Finance lease cost:
Amortization of leased assets	$2,428	$2,583
Interest on lease liabilities	281	501
Total finance lease cost	$2,709	$3,084

Supplemental cash flow information related to leases was as follows:

	Three Months Ended March 31, 2020	Three Months Ended March 31, 2019
Cash paid for amounts included in leases:
Operating cash flows from operating leases	$9,880	$5,477
Operating cash flows from finance leases	$281	$501
Financing cash flows from finance leases	$2,316	$2,121
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$-	$-
Finance leases	$-	$-

Supplemental balance sheet information related to leases was as follows:

	March 31, 2020	December 31, 2019
Operating leases:
Operating lease right-of-use assets	$104,369	$121,440
Current portion of operating lease obligations	$28,249	$30,255
Operating lease obligations, net of current portion	78,194	93,642
Total operating lease liabilities	$106,443	$123,897
Finance leases:
Property and equipment, at cost	$48,555	$53,183
Accumulated depreciation	(36,416	) (37,227)
Property and equipment, net	$12,139	$15,956
Current portion of finance lease obligations	$8,159	$9,951
Finance lease obligations, net of current portion	1,290	2,797
Total finance lease liabilities	$9,449	$12,748

	Three Months Ended March 31, 2020	December 31, 2019
Weighted Average Remaining Lease Term
Operating lease	3.4 years	3.6 years
Finance leases	0.9 years	1.3 years
Weighted Average Discount Rate
Operating lease	9.0%	9.0%
Finance leases	9.7%	9.7%

Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019.

A summary of future minimum payments under non-cancellable operating lease commitment as of March 31, 2020 is as follows:

Years ending December 31,	Total
2020 (remaining months)	$27,526
2021	36,702
2022	36,702
2023	23,974
Total lease liabilities	$124,904
Less amount representing interest	(18,461)
Total	106,443
Less current portion	(28,249)
	$78,194

The following is a schedule of minimum future rentals on the non-cancelable finance leases as of March 31, 2020:

Year ending December 31,	Total
2020 (remaining months)	$7,791
2021	2,777
Total minimum payments required:	10,568
Less amount representing interest:	(1,119)
Present value of net minimum lease payments:	9,449
Less current portion	(8,159)
	$1,290