Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies (Tables)

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Schedule of Classification of Lease Liabilities

The balance sheet classification of the Company’s lease liabilities was as follows:


	December 31,
Description	2020		2019
Operating lease liabilities:
Current portion of lease liabilities	$	644,527	$	631,889
Long-term portion of lease liabilities	$	2,958,895	$	3,264,128

Summary of Future Minimum Lease Payments

As of December 31, 2020, the maturities of the Company’s operating lease liabilities were as follows:


	Amount
Year ending December 31:
2021		679,719
2022		693,313
2023		707,179
2024		721,323
2025		735,749
Thereafter		1,515,940

Total lease payments		5,053,223
Less: Present value adjustment		(1,449,801	)

Operating lease liabilities	$	3,603,422

Lease, Cost

Lease costs under the terms of the Company’s leases for the years ended December 31, 2020 and 2019 are as follows:


	Year Ended December 31,
	2020		2019
Operating lease cost (1)	$	614,735	$	616,653
Variable lease costs (2)		126,203		98,909

Total lease cost	$	740,938	$	715,562

(1)	Operating lease payments included in the measurement of the Company’s lease liabilities are comprised of fixed payments according to the terms of the Company’s leases.

(2)

Variable lease payments consist of the Company’s utility costs billed by and paid to its landlord. Variable lease payments are presented as operating expenses in the Company’s Consolidated Statement of Operations in the same line item as expense arising from fixed lease payments and in net cash used in operating activities in the Company’s Statement of Cash Flows.

Rent expense is recognized using the straight-line method over the term of each lease. Rent expense for the year ended December 31, 2018 was approximately $618,000.