Clearfield leases a square foot facility at Winnetka Avenue North, Brooklyn Park, Minnesota consisting of our corporate offices, manufacturing and warehouse space. The lease term is years and months and commenced on On the Company amended its lease to add square feet to this facility, with the lease term for the additional space coterminous with the original lease. Upon proper notice and payment of a termination fee of approximately the Company has a -time option to terminate the lease effective as of the last day of the year of the term after the Company commenced paying base rent. The renewal and termination options have been included within the lease term because it is reasonably certain that we will exercise either option.

 

We also have an indirect lease arrangement for a square foot manufacturing facility in Tijuana, Mexico. The lease term is years and commenced on This lease does contain a written option to renew.

 

On the Company entered into an indirect lease arrangement for an additional square foot manufacturing facility in Tijuana, Mexico. The lease term is approximately months and commenced on The lease contains written options to renew for additional consecutive periods of years each.

 

Right-of-use lease assets and lease liabilities are recognized as of the commencement date based on the present value of the remaining lease payments over the lease term which includes renewal periods we are reasonably certain to exercise. Our leases do contain any material residual value guarantees or material restrictive covenants. As of we do have material lease commitments that have commenced.

 

Operating lease expense included within cost of goods sold and selling, general and administrative expense was as follows for the and months ended

 

	Operating lease expense under ASC842 , Leases, within:		Three months ended March 31, 2020				Six months ended March 31, 2020
	Cost of goods sold		$	218,874			$	404,502
	Selling, general and administrative			55,398				111,764
	Total lease expense		$	274,272			$	516,266

 

 

Future maturities of lease liabilities were as follows as of

 

			Operating Leases
	2020 (remainder of fiscal year)		$	440,312
	2021			752,423
	2022			772,803
	2023			744,963
	2024			516,725
	Thereafter			217,552
	Total lease payments			3,444,778
	Less: Interest			(261,912	)
	Present value of lease liabilities		$	3,182,866

 

The weighted average term and weighted average discount rate for our leases as of were years and respectively. For the and months ended the operating cash outflows from our leases were and respectively.

 

Rent expense for our operating leases as accounted for under ASC , included within cost of goods sold and selling, general and administrative expense was as follows for the and months ended

 

	Operating lease expense under ASC840, Leases, within:		Three months ended March 31, 2019				Six months ended March 31, 2019
	Cost of goods sold		$	164,118			$	332,946
	Selling, general and administrative			53,838				107,376
	Total lease expense		$	217,956			$	440,322

 

 

 

as follows:

 

			As of September 30, 2019
	2020		$	643,040
	2021			479,213
	2022			491,397
	2023			503,895
	2024			516,720
	Thereafter			217,551
	Total minimum lease payments		$	2,851,816