Capital and Operating Lease Obligations (Tables)

3 Months Ended

Mar. 31, 2019

The following table presents our lease-related assets and liabilities at March 31, 2019:

	Balance Sheet Classification	March 31, 2019
Assets:
Operating leases	Right-of-use operating lease assets	$	430,499
Finance leases	Property and equipment, net		688,467
Total lease assets		$	1,119,117

Liabilities:
Current:
Operating leases	Right-of-use operating lease assets	$	191,000
Finance leases	Current liabilities		659,729
Noncurrent:
Operating leases	Right-of-use operating lease obligations		239,699
Finance leases	Long-term debt		28,738

Total lease liabilities		$	1,119,117

Weighted-average remaining term:
Operating leases			2.39 years
Finance leases			0.28 years
Weighted-average discount rate:
Operating leases (1)			13.0	%
Finance leases			5.0	%

(1)	Upon adoption of the new lease standard, discount rates used for existing operating leases were established at January 1, 2019.

The following table presents certain information related to lease expense for finance and operating leases for the three months ended March 31, 2019:

	Three-Months Ended March 31, 2019
Finance lease expense:
Depreciation/amortization of leased assets (1)	$	(54,349	)
Interest on lease liabilities		3,945
Operating leases:
Short-term lease expense(2)		87,474
Total lease expense	$	37,070

(1) Adjusts depreciation recorded in prior year.

(2) Expenses are included in general and administrative expenses in our condensed consolidated statements of operations.

The following table presents supplemental cash flow information for the three months ended March 31, 2019:

	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	82,552
Operating cash flows for finance leases	$	3,945
Financing cash flows for finance leases payments	$	73,741

Aggregate future minimum rentals under right-to-use operating and capital leases are as follows:

	Right-to-Use
	Operating Leases			Capital Leases
April 1 2019 to March 31, 2020	$	234,817		$	674,226
April 1, 2020 to March 31, 2021		134,776			32,523
April 1, 2021 to March 31, 2022		110,062			-
April 1, 2022 to March 31, 2023		29,247			-
April 1, 2023 to March 31, 2024		2,436			-
Total		511,338			706,749

Less interest		(80,639	)		(18,282	)
Present value of minimum lease payments		430,699			688,467

Less current portion of lease obligations		(191,000	)		(659,729	)
Lease obligations, net of current portion	$	239,699		$	28,738