Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

10. Leases

The Company leases an office, a plant and certain equipment under non-cancelable operating lease agreements. The leases have remaining lease terms of two and a half years to five years. The plant lease includes an option to extend the lease for up to five years.

 Supplemental balance sheet information related to leases is as follows:   

Balance Sheet Location			September 30, 2020
Operating Leases
Right-of-use assets, net		$	1,567,074
Current liabilities	Lease liability, current maturities		311,745
Non-current liabilities	Lease liability, net of current maturities		1,255,329
Total operating lease liabilities		$	1,567,074
Finance Leases
Right-of-use assets		$	57,120
Current liabilities	Lease liability, current maturities		20,160
Non-current liabilities	Lease liability, net of current maturities		36,960
Total finance lease liabilities		$	57,120
Weighted Average Remaining Lease Term
Operating leases			4.9 years
Finance leases			2.9 years
Weighted Average Discount Rate
Operating leases			3%
Finance leases			3%

As the leases do not provide an implicit rate, the Company used an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments, which is reflective of the specific term of the leases and economic environment of each geographic region. 

Anticipated future lease costs, which are based in part on certain assumptions to approximate minimum annual rental commitments under non-cancelable leases, are as follows: 

Year Ending December 31,		Operating		Financing		Total
2020 (remaining)	$	87,300	$	4,555	$	91,855
2021		349,200		20,160		369,360
2022		349,200		20,160		369,360
2023		330,300		12,245		342,545
2024		324,000		-		324,000
Thereafter		243,000		-		243,000
Total lease payments		1,683,000		57,120		1,740,120
Less: Imputed interest		115,926		-		115,926
Present value of lease liabilities	$	1,567,074	$	57,120	$	1,624,194

Operating leases for office space and the plant, with total lease payments of $1,683,000, has been leased from an affiliate of the Company, and an affiliate of the sellers of Echo. Under the APA, the contingent consideration potentially due to the sellers may be paid in restricted common stock of the Company.