Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.20.2
LEASES
6 Months Ended
Jun. 30, 2020
Leases [Abstract]  
LEASES

NOTE 9. LEASES

 

Lessee

 

We have operating leases for our corporate office, two satellite facilities in the state of Washington, and for certain equipment. We account for lease components (such as rent payments) separately from the non-lease components (such as common-area maintenance costs, real estate and sales taxes and insurance costs). The discount rate represents the interest rate implicit in each lease or our incremental borrowing rate at lease commencement date.

As of June 30, 2020, our leases have remaining lease terms ranging from zero months to 24 months.

Supplemental balance sheet information related to leases is as follows:

 

 

 

As of June 30, 2020

 

 

Amount

 

 

Classification

Operating leases:

 

 

 

 

 

 

Operating lease right-of-use lease assets

 

$

168,559

 

 

 

 

 

 

 

 

 

 

Operating lease current liabilities

 

$

151,330

 

 

Current portion of operating lease liabilities

 

 

 

 

 

 

 

Operating lease long-term liabilities

 

 

17,650

 

 

Long-term operating lease liabilities

 

 

 

 

 

 

 

Total operating lease liabilities

 

$

168,980

 

 

 

 

 

 

 

 

 

 

Weighted-average remaining lease

   term:

 

 

 

 

 

 

Operating leases

 

0.8 years

 

 

 

 

 

 

 

 

 

 

Weighted-average discount rate:

 

 

 

 

 

 

Operating leases

 

 

5.6

%

 

 

 

The components of lease expense are as follows:

 

 

 

Three Months Ended June 30, 2020

 

 

Amount

 

 

Classification

Operating lease cost

 

$

71,715

 

 

Selling, general and administrative expense

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2020

 

 

Amount

 

 

Classification

Operating lease cost

 

$

143,426

 

 

Selling, general and administrative expense

 

Supplemental cash flow information related to leases is as follows:

 

 

 

Six Months Ended June 30, 2020

 

 

Amount

 

 

Classification

Cash paid for amounts included in the

   measurement of lease liabilities:

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

143,426

 

 

Net income

 

As of June 30, 2020, future maturities of our operating lease liabilities are as follows:

 

Twelve Months Ending June 30,

 

Amount

 

2021

 

$

151,330

 

2022

 

 

17,650

 

2023

 

 

 

Total lease liabilities

 

$

168,980

 

On July 3, 2020 we entered into a new 75-month lease for our corporate headquarters in Las Vegas. Pursuant to the new lease, we will occupy approximately 14,000 square feet of office and warehouse space. The lease commences on October 1, 2020, with rent abated through the remainder of 2020. Beginning in January 2021, we will commence paying rent and common area charges in an amount that is approximately equal to what we are paying pursuant to our current lease.