The Company leases certain properties and equipment for its ADMA Bio Centers subsidiary and certain equipment for its ADMA BioManufacturing subsidiary, which leases provide the right to use the underlying assets and require lease payments through the respective lease terms which expire at various dates through 2026. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company determines if an arrangement is an operating lease at inception. Leases with an initial term of 12 months or less are not recorded on the balance sheet. All other leases are recorded on the balance sheet with assets representing the right to use the underlying asset for the lease term and lease liabilities representing the obligation to make lease payments arising from the lease. Right-to-use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. The present value of the lease payments is determined using the Company’s incremental borrowing rate as of the date of application of ASU 2016-02, or the lease commencement date. For the lease liabilities recognized upon the application of ASU 2016-02, the Company used a discount rate of 13% to determine the present value of its lease obligations. The Company’s operating lease expense is recognized on a straight-line basis over the lease term and is reflected in Plasma center operating expenses and Selling, general and administrative expenses. Aggregate rent expense and cash paid for the Company’s operating leases for the years ended December 31, 2019 and 2018 was $0.6 million and $1.1 million, respectively.

In connection with the adoption of ASU 2016-02 on January 1, 2019 (see Note 2), the Company recognized right to use assets of $1.4 million and lease liabilities of approximately $1.6 million. The right-to-use assets are reflected in Deposits and other assets in the accompanying consolidated balance sheet as of December 31, 2019. Including a finance lease the Company entered into in June 2018, the Company has aggregate lease liabilities of $1.4 million as of December 31, 2019, which are comprised primarily of the lease for the Company’s plasma collection center in Kennesaw, GA and an administrative office lease in Roswell, GA related to the Company’s ADMA Bio Centers subsidiary. The Company’s operating leases have a weighted average remaining term of 5.9 years. Scheduled payments under the Company’s lease obligations are as follows:

During the year ended December 31, 2019, the Company entered into two new property leases where the Company intends to construct new plasma collection facilities. As of December 31, 2019, the Company had not taken possession of the leased property pertaining to either lease. The lease commencement date is February 1, 2020 for the first lease and the lease commencement date has not been determined for the second lease. With the exception of an advance deposit and an initial months’ rent for each lease totaling approximately $41,000, no payments were made under these leases during the year ended December 31, 2019. The initial term of the first lease is for 130 months, with monthly rental payments varying between approximately $9,000 and $11,000, including common area maintenance charges. The initial term of the second lease is for 128 months with monthly rental payments varying between $11,000 and $14,000, including common area maintenance charges.