Annual report pursuant to Section 13 and 15(d)

Note 14 - Terminated Lease Liability

Note 14 - Terminated Lease Liability

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Terminated Lease Liability Disclosure [Text Block]

Terminated Lease Liability

Effective

June 1, 2017,

Navidea relocated its Dublin, Ohio headquarters from

5600

Blazer Parkway (“Blazer”) to a smaller space at

4995

Bradenton Avenue. The Company concurrently executed a sublease arrangement (“Sublease”) for the Blazer space because there is

early termination provision in the Blazer lease. The Blazer lease and the Sublease end simultaneously in

October 2022.

In accordance with current accounting guidance, the Company

initially recorded a total liability of

$1.0

million, which was equal to the fair value of the remaining payments due under the Blazer Lease, net of the fair value of the payments to be received by the Company under the Sublease, and including a finder’s fee. The Company also recorded a loss on contract termination of

$399,000

and a loss on disposal of assets, primarily leasehold improvements and furniture and fixtures, related to the Blazer space of

$706,000.

Both losses are included in selling, general and administrative expenses for the year ended

December 31, 2017.

A summary of the changes in our terminated lease liability during the

year ended

December 31, 2017

is presented below:

	Terminated Lease Liability
Total liability, June 1, 2017 (date of sublease)	$	943,675
Additional finder ’s fees required by contract		80,371
Changes in estimated future payments		(29,917	)
Payment of finder ’s fees		(188,187	)
Payments under Blazer lease		(329,880	)
Receipts from subtenant		195,621
Accretion of liability		23,624
Total liability, December 31, 2017	$	695,307