Note 4 – Operating Leases – Right-of-Use Assets and Lease Liability Obligations

The Company has three non-cancelable operating leases, two for office space and one for office machinery, that expire in December 2020, March 2022 and April 2022. Rent expense for these operating leases is recognized over the term of the lease on a straight-line basis. Below is a summary of the Company’s Operating Right-of-Use Assets and Operating Lease liabilities as of September 30, 2019:

Assets
Operating lease ROU assets	$	369,608

Liabilities
Operating lease liability, current		169,478
Operating lease liability, net of current portion		200,130
Total operating lease liabilities	$	369,608

During the nine months ended September 30, 2019, the Company recognized $128,713 in operating lease expenses, which are included in office lease and expenses in the Company’s consolidated statements of operations and comprehensive income.

Supplemental cash flow information for the nine months ended September 30, 2019 is as follows:

Generally, our lease agreements do not specify an implicit rate. Therefore, we estimate our incremental borrowing rate, which is defined as the interest rate we would pay to borrow on a collateralized basis, considering such factors as length of lease term and the risks of the economic environment in which the leased asset operates. As of September 30, 2019, the following disclosures for remaining lease term and incremental borrowing rates were applicable:

Supplemental disclosure		September 30, 2019
Weighted average remaining lease term		3 years
Weighted average discount rate		5.02%

Year ended December 31,		Amounts under Operating Leases
Remaining 2019	$	45,793
2020		184,831
2021		136,949
2022		46,070
Total lease payments		413,643
Less: Imputed interest		(44,035	)
Total	$	369,608