Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.20.2
LEASES
9 Months Ended
Sep. 30, 2020
Leases [Abstract]  
LEASES LEASES
We have leases for office equipment and office space. The leases for office equipment are classified as financing leases and the typical term is 36 months. We have the option to extend most office equipment leases, but we do not intend to do so. Accordingly, no extensions have been recognized in the right-of-use asset or lease liability. The office equipment lease payments are not variable and the lease agreements do not include any non-lease components, residual value guarantees, or restrictions. There are no interest rates implicit in the office equipment lease agreements, so we have used our incremental borrowing rate to determine the discount rate to be applied to our financing leases. The weighted average discount rate applied to our financing leases is 4.50% and the weighted average remaining lease term is 17.8 months.

The following table shows the components of financing lease cost:

Financing Lease Cost For the Three Months Ended September 30, 2020 For the Nine Months Ended September 30, 2020
Amortization of right-of-use assets $ 11,567  $ 45,064 
Interest on lease liabilities 699  4,946 
Total financing lease cost $ 12,266  $ 50,010 
The following table reconciles future minimum lease payments to the discounted finance lease liability:

Years ending December 31, Amount
2020 - remaining $ 12,506 
2021 40,921 
2022 12,803 
2023 — 
2024 — 
Thereafter — 
Total future minimum lease payments $ 66,230 
Less: Amount representing interest 2,279 
Present value of future payments $ 63,951 
Current portion $ 43,024 
Long-term portion $ 20,927 

Because our office space leases are short-term, we have elected not to recognize them on our balance sheet under the short-term recognition exemption. During the three and nine months ended September 30, 2020, we recognized $19,189 and $57,719, respectively, in short-term lease costs associated with office space leases.