Leases

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases

4. Leases

The Company’s leases are primarily comprised of real estate leases for the use of office space, with certain lease arrangements that contain equipment. The Company determines whether an arrangement contains a lease at inception. Lease assets and liabilities are recognized upon commencement of the lease based on the present value of the future minimum lease payments over the lease term. The lease term includes options to extend the lease when it is reasonably certain that the Company will exercise that option. Substantially all of the leases are long-term operating leases for facilities with fixed payment terms between 1.5 and 12.8 years.

The table below presents supplemental information related to operating leases:

Six Months Ended June 30, 2020
Operating cash flows for operating leases	$	1,349,213
Noncash lease liabilities arising from obtaining operating leased assets during the period	$	16,617,790
Weighted-average remaining lease term		11.13 years
Weighted-average discount rate		13.46	%

The Company generally utilizes its incremental borrowing rate based on information available at the commencement of the lease in determining the present value of future payments since the implicit rate for most of the Company’s leases is not readily determinable.

Variable lease expense includes rental increases that are not fixed, such as those based on amounts paid to the lessor based on cost or consumption, such as maintenance and utilities.

Operating lease costs recognized for the three months ended June 30, 2020 and 2019 were $1,062,181 and $130,951, respectively. Operating lease costs for the six months ended June 30, 2020 and 2019 were $2,100,085 and $261,903, respectively.

Maturities of operating lease liabilities as of June 30, 2020 are summarized as follows:

Years Ending December 31,
2020 (remaining six months of the year)	$	1,839,773
2021		3,804,853
2022		3,525,158
2023		3,528,696
2024		3,526,406
Thereafter		27,563,572
Minimum lease payments		43,788,458
Less imputed interest		(22,362,451	)
Present value of operating lease liabilities	$	21,426,007
Current portion of operating lease liabilities	$	1,506,992
Long-term portion of operating lease liabilities		19,919,015
Total operating lease liabilities	$	21,426,007

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

			Payments due by Year
	Total		2020		2021		2022		2023		2024		Thereafter
Operating leases	$	6,132,252	$	2,579,924	$	685,111	$	472,084	$	486,247	$	500,834	$	1,408,052

Further details as of the date these condensed consolidated financial statements were issued or were available to be issued are provided under the heading Leases in Note 13).