Leases

3 Months Ended

Mar. 31, 2021

The Company has entered into operating and finance leases primarily for real estate and equipment rental. These leases have terms which range from two years to four years, and often include one or more options to renew or in the case of equipment rental, to purchase the equipment. These operating and finance leases are listed as separate line items on the Company's consolidated balance sheets and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are also listed as separate line items on the Company's consolidated balance sheets. As of March 31, 2021 and December 31, 2020, total operating and financed right-of-use assets were $843,573 and $315,793, and $606,573 and $395,910, respectively.

As of March 31, 2021 and 2020, the Company recorded $80,117 and $105,678, respectively, in amortization expense related to finance leases.

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments.

Information related to the Company's operating lease liabilities are as follows:


	For the Three Months Ended March 31,
Cash paid for operating lease liabilities	$	182,807
Weighted-average remaining lease term	2.4 years
Weighted-average discount rate	6.25		%


Minimum future lease payments ended March 31, 2021
2021	285,922
2022	378,339
2023	295,778
2024	10,983
	971,022
Less imputed interest	(127,449)
Total lease liabilities	$	843,573

Information related to the Company's financed lease liabilities are as follows:


	For the Three Months Ended March 31,
Cash paid for finance lease liabilities	$	69,291
Weighted-average remaining lease term	2.3 years
Weighted-average discount rate	6.25		%


Minimum future lease payments ended March 31, 2021
2021	$	200,518
2022	72,982
2023	37,658
	311,158
Less imputed interest	(30,158)
Total lease liabilities	$	281,000

Leases

As of March 31, 2021 and 2020, the Company recorded $80,117 and $105,678, respectively, in amortization expense related to finance leases.

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments.

Information related to the Company's operating lease liabilities are as follows:


	For the Three Months Ended March 31,
Cash paid for operating lease liabilities	$	182,807
Weighted-average remaining lease term	2.4 years
Weighted-average discount rate	6.25		%


Minimum future lease payments ended March 31, 2021
2021	285,922
2022	378,339
2023	295,778
2024	10,983
	971,022
Less imputed interest	(127,449)
Total lease liabilities	$	843,573

Information related to the Company's financed lease liabilities are as follows:


	For the Three Months Ended March 31,
Cash paid for finance lease liabilities	$	69,291
Weighted-average remaining lease term	2.3 years
Weighted-average discount rate	6.25		%


Minimum future lease payments ended March 31, 2021
2021	$	200,518
2022	72,982
2023	37,658
	311,158
Less imputed interest	(30,158)
Total lease liabilities	$	281,000