9. LEASES

In June 2020, we amended our office lease agreement and the term has been extended through July 2022. During the extended term, our rental payments will be approximately $4,200 per month. We had previously amended the office lease to extend through July 2020. Our facility lease is our only existing lease as of June 30, 2020 and is classified as operating lease. The discount rate used in the calculation of our lease liability is approximately 20%, which is based on our estimate of the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment as the lease does not provide an implicit rate.

The following table summarizes the Company’s recognition of its operating lease:


	June 30, 2020
Assets
Operating lease right-of-use asset	$	85,668
Total lease assets	$	85,668

Liabilities
Current portion of operating lease liability	$	36,836
Non-current
Operating lease liability		49,215
Total lease liabilities	$	86,051

Rent expense, consisting of minimum operating lease payments and variable lease payments for pass through items such as common area maintenance and real estate taxes for the six months ended June 30, 2020 and 2019 is recorded as general and administrative expense and consisted of the following:


	2020		2019

Operating lease cost	$	22,891	$	23,992
Variable lease costs		—		2,766
Total lease costs	$	22,891	$	26,758

A maturity analysis of our operating lease minimum lease payments as of June 30, 2020 follows:


2020	$	25,349
2021		50,904
2022		29,694
Total		105,947

Discount factor		(19,896)
Total lease liabilty	$	86,051