Right-of-Use Assets and Liabilities
|3 Months Ended|
Mar. 31, 2019
|Leases, Operating [Abstract]|
|Lessee, Operating Lease, Disclosure [Table Text Block]||
Note 12 – Right-of-Use Assets and Liabilities
The Company has signed several lease agreements, with the largest being for its office and manufacturing facility in the Rochester, New York area under an operating lease that commenced October 3, 2015 and expires on October 3, 2020. This lease has an original five-year term with an option by the Company to renew for two additional three-year terms at pre-agreed to lease rates. This renewal term is excluded from our right-to-use asset and liability as of March 31, 2019 as the renewal option for our current leased facility is not reasonably certain.
Rent expense under the operating leases totaled $140,300 and $112,896 for the three months ended March 31, 2019 and 2018, respectively.
Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements. The leases generally also include real estate taxes and common area maintenance charges in the annual rental payments. Short-term leases are leases having a term of twelve months or less. The Company recognizes short-term leases on a straight-line basis and does not record a related lease asset or liability for such leases.
As none of our leases provide an implicit interest rate, we use our incremental borrowing rate to determine our discount rate at lease inception based upon the information available at commencement in determining the present value of lease payments. As of March 31, 2019, the weighted average discount rate
was 5% and the weighted average remaining lease term was 1.7 years.
Future lease payments under operating leases as of March 31, 2019 were as follows:
Tabular disclosure for lessee's operating leases. Includes, but is not limited to, description of lessee's operating lease, existence and terms of renewal or purchase options and escalation clauses, restrictions imposed by lease, such as those concerning dividends, additional debt, and further leasing, rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef