LEASES

January 1, 2019,

the Company adopted ASU

2016

“Leases (Topic

842

),” a new standard related to leases to increase transparency and comparability among organizations by requiring the recognition of lease assets and lease liabilities on the balance sheet. Most prominent among the amendments is the recognition of assets and liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP.

The Company has operating leases for facilities, vehicles and equipment. These leases have remaining terms of

years to

years, some of which include options to extended the leases for up to

years. Lease expense for the year ended

December 31, 2019

was approximately

$1.6

million. Lease expense for operating leases under the prior leasing standards for the year ended

December 31, 2018

was approximately

$1.3

million.

Supplemental balance sheet information related to leases:

	December 31, 2019
Operating leases:
Operating lease right-of-use assets	$	9,224,840

Other current liabilities		850,664
Operating lease liabilities		8,513,448
Total operating lease liabilities	$	9,364,112


Weighted Average Remaining Lease Term
Operating Leases (in years)		11.0

Weighted Average Discount Rate
Operating Leases		5.0	%

Future minimum lease payments at

December 31, 2019

were as follows:

	Operating Leases
Year Ending December 31,
2020	$	1,301,166
2021		1,269,036
2022		1,271,491
2023		1,268,341
2024		1,285,820
Thereafter		5,601,342
Total future minimum lease payments	$	11,997,169
Less: imputed interest		(2,633,084	)
Total	$	9,364,112

Commitments and Contingencies

From time to time, the Company is involved in legal matters arising in the ordinary course of business. While the Company believes that such matters are currently

not

material, there can be

assurance that matters arising in the ordinary course of business for which the Company is, or could be, involved in litigation, will

not

have an adverse effect on its business, financial condition or results of operations.