Note 7 - Lessee Leases

Our operating leases are comprised of office space and office equipment leases. Fleet leases entered into prior to January 1, 2019, under ASC 840 guidelines, are classified as operating leases. Fleet leases entered into beginning January 1, 2019, under ASC 842 guidelines, are classified as finance leases.

Gross assets recorded under finance leases related to WCI vehicle fleet leases, included in “Property and equipment” were $148,732 and $0 as of March 31, 2019 and December 31, 2018, respectively. Prior to conversion on January 1, 2019 to the guidelines of ASC 842, WCI vehicle fleet leases were recorded as operating leases. Accumulated amortization associated with finance leases was $5,367 and $0 as of March 31, 2019 and December 31, 2018, respectively.

Lease costs recognized in our consolidated statements of operations is summarized as follows:

(1)         Rental expense under operating agreements was $42,216 for the three months ended March 31, 2019.

Other information about lease amounts recognized in our condensed consolidated financial statements is summarized as follows:

As of March 31, 2019, our lease liabilities were as follows: