Annual report pursuant to Section 13 and 15(d)

6. Operating Lease Assets

6. Operating Lease Assets
12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
6. Operating Lease Assets

6.  Operating Lease Assets


Adoption of Accounting Standards Codification (“ASC”) Topic 842, “Leases." The Company adopted Topic 842 on January 1, 2019, using the modified retrospective method and the optional transition method to record the adoption impact through a cumulative adjustment to equity. Results for reporting periods beginning after January 1, 2019, are presented under Topic 842, while prior periods are not adjusted and continue to be reported under the accounting standards in effect for those periods.


The following are additional details related to leases recorded on our balance sheet as of December 31, 2019:

Leases Classification     Amount
     Operating lease assets Operating lease assets     $ 260,645   
Total lease assets       $ 260,645   
     Operating lease liabilities Operating lease liabilities     $ 258,343   
     Operating lease liabilities Noncurrent operating lease liabilities     $ 45,460   
Total lease liabilities       $ 303,803   


During the year ended December 31, 2019, we recorded amortization expense of $4,419 related to the accretion of the lease liability, which is included in depreciation and amortization in the consolidated statement of operations.


Rent expense was $320,496 and $416,080 for the years ended December 31, 2019 and 2018, respectively.


The maturity analysis below summarizes the remaining future undiscounted cash flows for our operating leases, a reconciliation to operating lease liabilities reported on the Condensed Consolidated Balance Sheet, our weighted-average remaining lease term and weighted average discount rate:

Year ending December 31,    Amount
2020   $ 270,982   
2021     35,748   
2022     11,916   
2023     -   
2024     -   
Thereafter     -   
   Total future lease payments     318,646   
   Less: imputed interest     (14,843)  
Total   $ 303,803   


Weighted Average Remaining Lease Term (years)  
   Operating leases 1.34   
Weighted Average Discount Rate  
   Operating leases 6.75%