Leases

9 Months Ended

Sep. 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 one month to thirty-five 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 September 30, 2020		Three Months Ended September 30, 2019
Operating lease cost	$	9,612	$	12,091
Finance lease cost:
Amortization of leased assets	$	2,698	$	2,559
Interest on lease liabilities		168		393
Total finance lease cost	$	2,866	$	2,952

	Nine Months Ended September 30, 2020		Nine Months Ended September 30, 2019
Operating lease cost	$	28,347	$	23,397
Finance lease cost:
Amortization of leased assets	$	7,763	$	7,812
Interest on lease liabilities		664		1,325
Total finance lease cost	$	8,427	$	9,137

Supplemental cash flow information related to leases was as follows:

	Nine Months EndedSeptember 30, 2020		Nine Months EndedSeptember 30, 2019
Cash paid for amounts included in leases:
Operating cash flows from operating leases	$	29,402	$	20,929
Operating cash flows from finance leases	$	664	$	1,325
Financing cash flows from finance leases	$	7,065	$	6,523
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	-	$	55,600
Finance leases	$	-	$	-

Supplemental balance sheet information related to leases was as follows:

	September 30, 2020			December 31, 2019
Operating leases:
Operating lease right-of-use assets	$	96,891		$	121,440
Current portion of operating lease obligations	$	31,492		$	30,255
Operating lease obligations, net of current portion		67,077			93,642
Total operating lease liabilities	$	98,569		$	123,897
Finance leases:
Property and equipment, at cost	$	51,754		$	53,183
Accumulated depreciation		(43,585	)		(37,227	)
Property and equipment, net	$	8,169		$	15,956
Current portion of finance lease obligations	$	5,230		$	9,951
Finance lease obligations, net of current portion		-			2,797
Total finance lease liabilities	$	5,230		$	12,748

	September 30, 2020			December 31, 2019
Weighted Average Remaining Lease Term
Operating lease	2.9 years			3.6 years
Finance leases	0.4 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 September 30, 2020 is as follows:

Years ending December 31,	Total
2020 (remaining months)		9,780
2021		39,122
2022		39,122
2023		24,193
Total lease liabilities	$	112,217
Less amount representing interest		(13,648	)
Total		98,569
Less current portion		(31,492	)
	$	67,077

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

Year ending December 31,	Total
2020 (remaining months)		2,573
2021		2,755
Total minimum payments required:		5,328
Less amount representing interest:		(98	)
Present value of net minimum lease payments:		5,230
Less current portion		(5,230	)
	$	-