Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies

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Commitments and Contingencies
12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Operating Leases
The table below summarizes the components of lease expense and income statement location for the year ended December 31, 2019:
Line Item in the Company’s Consolidated Statements of Operations Year Ended December 31, 2019
Finance lease costs:
Amortization of assets Depreciation and amortization $ 24,675   
Interest on lease liabilities Other expense, net 6,832   
Total finance lease costs $ 31,507   
Operating lease costs General and administrative expenses $ 3,005,124   
Total lease costs $ 3,036,631   
Supplemental information and balance sheet location related to leases is as follows:
December 31, 2019
Operating Leases:
Operating lease right-of -use asset $ 12,486,672   
Operating lease liability - current portion 2,313,109   
Operating lease liability - net of current portion 11,901,040   
Total operating lease liability $ 14,214,149   
Finance Leases:
Property and equipment, at cost 80,604   
Less accumulated amortization (24,675)  
Property and equipment, net $ 55,929   
Finance lease liability - current portion 24,253   
Finance lease liability - net of current portion 34,398   
Total finance lease liabilities $ 58,651   
Weighted average remaining lease term (in years):
Operating leases 5.4
Finance lease 2.3
Weighted average discount rate:
Operating leases 8.7  %
Finance leases 10.0  %
Supplemental cash flow information related to leases is as follows:
Year Ended December 31, 2019
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases $ 2,834,903   
Operating cash flows from finance leases 6,832   
Financing cash flows from finance leases 21,954   
Non-cash transactions: ROU assets obtained in exchange for lease liabilities
Operating lease $ 1,350,090   
Finance lease 80,604   

Maturities of lease liabilities as of December 31, 2019 are as follows:
Operating Leases Finance Lease
2020 $ 3,376,830    $ 28,786   
2021 3,545,186    28,786   
2022 3,430,110    7,676   
2023 2,716,465    —   
2024 2,096,333    —   
Thereafter 2,629,450    —   
Total lease payments 17,794,374    65,248   
Less: Imputed interest (3,580,225)   (6,597)  
Total lease obligations 14,214,149    58,651   
Less: Current obligations (2,313,109)   (24,253)  
Long-term lease obligation $ 11,901,040    $ 34,398   

The future minimum obligations under operating leases in effect as of December 31, 2018 having a noncancelable term in excess of one year as determined prior to the adoption of ASC 842 are as follows:
Operating Leases   
2020 $ 2,630,443   
2021 2,406,645   
2022 2,299,887   
2023 2,195,077   
2024 1,474,396   
Thereafter 2,772,575   
Total $ 13,779,023   

Total rent expense for the years ended December 31, 2019 and 2018 was $3,381,825 and $2,844,010, respectively.
During the fourth quarter of 2019, the Company entered into various operating leases for its new corporate clinics' space that have not yet commenced. These leases are expected to result in additional ROU asset and liability of approximately $1.3 million. These leases are expected to commence during the first quarter of 2020, with a lease term of five to ten years.
Litigation
In the normal course of business, the Company is party to litigation from time to time. The Company maintains insurance to cover certain actions and believes that resolution of such litigation will not have a material adverse effect on the Company.