4. LEASE

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

LEASE

4.     LEASE

The Company entered into an operating lease for an office space which became effective in June 2020 when the construction was complete and we were given access to occupy the space. The lease term is 10 years from the effective date and allows for two optional extensions of five years each. The two optional extensions are not recognized as part of the right-of-use asset or lease liability since it is not reasonably certain that the Company will extend this lease. As of March 31, 2021, the remaining lease term was 9.2 years and the discount rate was 6%. The lease for our previous office space was accounted for as a short-term lease.

Operating lease cost included in selling, general and administrative expenses was $215,144 for the three months ended March 31, 2021. Short-term lease cost included in selling, general and administrative expense was $82,441 for the three months ended March 31, 2020.

The following is the lease maturity analysis of our operating lease as of March 31, 2021:

Twelve months ending March 31,

2022	$	571,968
2023		571,968
2024		571,968
2025		571,968
2026		629,165
Thereafter		2,669,184
Total lease payments		5,586,221
Less: Imputed interest		(1,330,356	)
Present value of future lease payments		4,255,865
Less: current portion of lease liability		(325,470	)
Long-term portion of lease liability	$	3,930,395