Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.21.1
LEASES
3 Months Ended
Mar. 31, 2021
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 for purposes of determining our lease liabilities. The weighted average discount rate applied to our financing leases is 4.50% and the weighted average remaining lease term is 12.8 months.

The following table shows the components of financing lease cost:

For the Three Months Ended March 31,
Financing Lease Cost 2021 2020
Amortization of right-of-use assets $ 10,992  $ 18,376 
Interest on lease liabilities 1,936  872 
Total financing lease cost $ 12,928  $ 19,248 
The following table reconciles future minimum lease payments to the discounted finance lease liability:

Years ending December 31, Amount
2021 - remaining $ 29,019 
2022 12,803 
2023 — 
2024 — 
2025 — 
Thereafter — 
Total future minimum lease payments $ 41,822 
Less: Amount representing interest 1,061 
Present value of future payments $ 40,761 
Current portion $ 36,408 
Long-term portion $ 4,353 

Because our office space leases are substantially all considered to be short-term, we have elected not to recognize them on our balance sheet under the short-term recognition exemption. During the three months ended March 31, 2021 and March 31, 2020, we recognized $16,262 and $19,472, respectively, in short-term lease costs associated with office space leases.