LEASES

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

LEASES

12. LEASES

The Company leases a building and equipment. Under ASC 842, at contract inception we determine whether the contract is or contains a lease and whether the lease should be classified as an operating or a financing lease. Operating leases are included in ROU assets and operating lease liabilities in our consolidated balance sheets.

The Company leases manufacturing and office space under an agreement classified as an operating lease.

The lease agreement expires on April 30, 2022 and does not include any renewal options. The agreement provides for an initial monthly base amount plus annual escalations through the term of the lease.

In addition to the monthly base amounts in the lease agreement, the Company is required to pay real estate taxes and operating expenses during the lease terms.

The Company also leases office equipment in agreements classified as operating leases.

For the years ended December 31, 2019, and 2018 the Company’s operating lease expense was $1,761,374 and $1,608,701, respectively.

Future minimum lease payments under non-cancellable operating leases as of December 31, 2019 were as follows:

Year ending December 31,
2020	$	1,921,015
2021		1,964,815
2022		705,889
2023		37,238
2024		8,349
Total undiscounted operating lease payments		4,637,306
Less imputed interest		(331,369	)
Present value of operating lease payments	$	4,305,937

The following table sets forth the ROU assets and operating lease liabilities as of December 31, 2019:

Assets
ROU Assets	$	3,886,863
Liabilities
Current operating lease liabilities	$	1,709,153
Long-term operating lease liabilities		2,596,784
Total ROU liabilities	$	4,305,937

The Company’s weighted average remaining lease term for its operating leases is 2.1 years.