COMMITMENTS AND CONTINGENCIES Secured Credit Facility The Company has a secured credit facility agreement (also referred to herein as line of credit) with Western Alliance Bank, the parent company of Bridge Bank, N.A. of San Jose, California, which it obtained on March 1, 2013 and expanded on April 13, 2015. Pursuant to the secured credit facility agreement, as amended, the Company may submit requests for funding up to 80% of its eligible accounts receivable up to a maximum credit limit of $5 million. This agreement is secured by the Companys accounts receivable and substantially all of the Companys other assets. The agreement automatically renews in April of each year and requires the Company to pay an annual facility fee of $20,000 (0.4% of the credit limit) and an annual due diligence fee of $1,000. Interest accrues on the advances at the rate of prime plus 1.5% per annum and the default rate of interest is prime plus 7%. The Company had no amounts outstanding under this secured credit facility as of June 30, 2020 and December 31, 2019. Assuming that all of the Companys trade accounts receivables were eligible for funding, the Company would have approximately $2.4 million in available credit under the agreement as of June 30, 2020. The annual fees are capitalized in the Companys consolidated balance sheet within other current assets and are amortized to interest expense over one year. During the three months ended June 30, 2020 and 2019, the Company amortized $5,250 and $6,303 of the secured credit facility costs through interest expense. During the six months ended June 30, 2020 and 2019, the Company amortized $10,500 and $14,714 of the secured credit facility costs through interest expense. The remaining value of the capitalized loan costs related to the secured credit facility as of June 30, 2020 is $17,500; this amount will be amortized to interest expense over the next ten months. Lease Commitments The Companys corporate headquarters were located at 480 N. Orlando Avenue, Suite 200 in Winter Park, Florida until its lease expired on April 30, 2020. Due to its current work from home policy enacted on March 16, 2020 as a result of the COVID-19 pandemic, t he Company has not yet entered into any new lease agreement for its headquarters and does not intend to do so prior to the end of 2020 and until circumstances allow . The Company also occupied flexible office space under monthly, quarterly or semi-annual membership contracts in Los Angeles, San Francisco, Denver, Chicago, and Toronto during the six months ended June 30, 2020, but the contracts for Los Angeles, San Francisco and Toronto were not renewed upon expiration of their terms on April 30, 2020. Upon the January 1, 2019 adoption of ASU No. 2016-02, Leases , the Company had one material lease greater than 12 months in duration. This was the lease associated with its corporate headquarters in Winter Park, Florida. The adoption of this standard resulted in the Company recording a right-of-use asset of $410,852 and an associated right-of-use liability of $399,892. The operating lease right-of-use liability was determined based on the present value of the remaining minimum rental payments using the Companys average incremental borrowing rate 9.5% and the operating lease right-of-use asset was determined based on the value of the lease liabilities, adjusted for a deferred rent balance, which was previously included in current liabilities. The right-of-use asset and liability were fully amortized upon expiration of the lease in April 2020 . During the six months ended June 30, 2020, the Company recorded $24,024 of accretion on its right-of-use liability through rent expense in general and administrative expenses. The Company has no obligations under finance leases as of June 30, 2020. Total operating lease expense and other short-term lease expense recorded in general and administrative expense in the accompanying consolidated statements of operations was $76,545 and $150,082 for the three months ended June 30, 2020 and 2019, respectively, and $224,528 and $304,779 for the six months ended June 30, 2020 and 2019, respectively. Cash paid for the one operating lease was $113,516 and $170,273 during the six months ended June 30, 2020 and 2019, respectively. Litigation From time to time, the Company may become involved in various other lawsuits and legal proceedings that arise in the ordinary course of its business. Litigation is, however, subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm the Companys business. The Company is currently not aware of any legal proceedings or claims that it believes would or could have, individually or in the aggregate, a material adverse effect on the Company. Regardless of final outcomes, however, any such proceedings or claims may nonetheless impose a significant burden on management and employees and may come with costly defense costs or unfavorable preliminary interim rulings.