11. Operating Leases – Right of Use Assets

9 Months Ended

Sep. 30, 2020

11.

Operating Lease Right of Use Assets

The Company has an operating lease for office and warehouse space that expires in 2023. Below is a summary of the Company’s right of use assets and liabilities as of September 30, 2020:

Right-of-use assets	$	549,030
Lease liability obligations, current	$	190,213
Lease liability obligations, less current portion		374,994
Total lease liability obligations	$	565,207
Weighted-average remaining lease term		2.7 years
Weighted-average discount rate		10	%

During the nine months ended September 30, 2020, the Company recognized approximately $124,000 in operating lease costs and are included in selling, general and administrative expenses in our consolidated statement of operations. During the nine months ended September 30, 2020, operating cash flows from operating leases was $175,000.

Approximate future minimum lease payments for the Company’s right of use assets over the remaining lease periods as of September 30, 2020, are as follows:

Year ending December 31,

2020	$	59,000
2021		240,000
2022		246,000
2023		103,000
Total minimum payments	$	648,000

Water Now, Inc. 10-Q