Derivatives

12 Months Ended

Dec. 31, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives

6.DERIVATIVES

The Company’s objective in using an interest rate derivative is to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company uses an interest rate cap to manage interest rate risk. The Company carries the premium paid for the interest rate cap as an asset on the balance sheet at fair value. The change in the unrealized gain or loss of the premium is recorded as an increase or decrease to interest expense.

The following table summarizes the terms of the Company’s derivative financial instrument as of December 31, 2020:

	Notional Amount					Effective	Maturity
Product	December 31, 2020		December 31, 2019		Strike	Date	Date
Cap Agreement	$	7,500,000	$	7,500,000	3.50 % - 4.00%	12/24/2018	12/20/2021