Leases

6 Months Ended

Jun. 30, 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 four months to thirty-eight 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 June 30, 2020		Three Months Ended June 30, 2019
Operating lease cost	$	9,028	$	5,653
Finance lease cost:
Amortization of leased assets	$	2,637	$	2,670
Interest on lease liabilities		215		431
Total finance lease cost	$	2,852	$	3,101

	Six Months Ended June 30, 2020		Six Months Ended June 30, 2019
Operating lease cost	$	18,735	$	11,306
Finance lease cost:
Amortization of leased assets	$	5,065	$	5,253
Interest on lease liabilities		496		932
Total finance lease cost	$	5,561	$	6,185

Supplemental cash flow information related to leases was as follows:

	Six Months Ended June 30, 2020		Six Months Ended June 30, 2019
Cash paid for amounts included in leases:
Operating cash flows from operating leases	$	19,447	$	10,954
Operating cash flows from finance leases	$	496	$	932
Financing cash flows from finance leases	$	4,616	$	4,281
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	-	$	-
Finance leases	$	-	$	-

Supplemental balance sheet information related to leases was as follows:

	June 30, 2020			December 31, 2019
Operating leases:
Operating lease right-of-use assets	$	101,936		$	121,440
Current portion of operating lease obligations	$	30,138		$	30,255
Operating lease obligations, net of current portion		73,717			93,642
Total operating lease liabilities	$	103,855		$	123,897
Finance leases:
Property and equipment, at cost	$	50,653		$	53,183
Accumulated depreciation		(40,522	)		(37,227	)
Property and equipment, net	$	10,131		$	15,956
Current portion of finance lease obligations	$	7,517		$	9,951
Finance lease obligations, net of current portion		-			2,797
Total finance lease liabilities	$	7,517		$	12,748

	June 30, 2020			December 31, 2019
Weighted Average Remaining Lease Term
Operating lease	3.1 years			3.6 years
Finance leases	0.6 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 June 30, 2020 is as follows:

Years ending December 31,	Total
2020 (remaining months)		19,414
2021		38,829
2022		38,829
2023		24,012
Total lease liabilities	$	121,084
Less amount representing interest		(17,229	)
Total		103,855
Less current portion		(30,138	)
	$	73,717

The following is a schedule of minimum future rentals on the non-cancelable finance leases as of June 30, 2020:

Year ending December 31,	Total
2020 (remaining months)		5,112
2021		2,733
Total minimum payments required:		7,845
Less amount representing interest:		(328	)
Present value of net minimum lease payments:		7,517
Less current portion		(7,517	)
	$	-