Quarterly report pursuant to Section 13 or 15(d)

Note 10 - Leases

v3.19.3
Note 10 - Leases
9 Months Ended
Sep. 30, 2019
Notes to Financial Statements  
Lessee, Operating Leases [Text Block]
10.
Leases
 
We currently lease approximately
5,000
square feet of office space at
4995
Bradenton Avenue, Dublin, Ohio, as our principal offices. The current least term expires in
June 2020
and provides for a monthly base rent of approximately
$3,000.
We also leased approximately
2,000
square feet of office space at
560
Sylvan Avenue, Englewood Cliffs, New Jersey, at a monthly base rent of approximately
$3,000.
The lease for the New Jersey office space expired on
March 31, 2019
and we did
not
renew.
 
In addition, we currently lease approximately
25,000
square feet of office space at
5600
Blazer Parkway, Dublin, Ohio, formerly our principal offices. The current lease term expires in
October 2022,
at a monthly base rent of approximately
$26,000
during
2019.
In
June 2017,
the Company executed a sublease arrangement for the Blazer space, providing for monthly sublease payments to Navidea of approximately
$39,000
through
October 2022.
 
We also currently lease a vehicle. The lease term expires in
September 2021,
at a monthly payment of approximately
$300.
 
We adopted ASU
2016
-
02,
Leases (Topic
842
)
effective
January 1, 2019.
The following table summarizes the impact of the adoption of ASU
2016
-
02
on our balance sheet.
 
   
Operating
Lease
Right-
of-Use
Assets
   
Operating
Lease
Liabilities
   
Terminated
Lease
Liability
   
Deferred
Rent
 
Pre-adoption balance
  $
    $
    $
589,173
    $
2,587
 
Change
   
406,842
     
998,602
     
(589,173
)
   
(2,587
)
Post-adoption balance
  $
406,842
    $
998,602
    $
    $
 
 
All of our leases are operating leases and are included in right-of-use lease assets, current lease liabilities and noncurrent lease liabilities on our consolidated balance sheets. These assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the lease term using the Company’s incremental borrowing rates or implicit rates, when readily determinable. Short-term operating leases which have an initial term of
12
months or less are
not
recorded on the consolidated balance sheets.
 
Lease expense for operating leases is recognized on a straight-line basis over the lease term, and is included in selling, general and administrative expenses on our consolidated statements of operations. Total operating lease expense was
$54,000
and
$176,000
for the
three
-month and
nine
-month periods ended
September 30, 2019,
respectively. Sublease income was
$94,000
and
$283,000
for the
three
-month and
nine
-month periods ended
September 30, 2019,
and was recorded in selling, general and administrative expenses.
 
The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s operating leases as of
September 30, 2019.
 
Maturity of Lease Liabilities
 
Operating
Lease
Payments
 
2019 (remaining)
  $
90,324
 
2020
   
319,034
 
2021
   
306,781
 
2022
   
253,339
 
Total undiscounted operating lease payments
   
969,478
 
Less imputed interest
   
144,799
 
Present value of operating lease liabilities
  $
824,679
 
 
Balance Sheet Classification
 
 
 
 
Current lease liabilities
  $
249,615
 
Noncurrent lease liabilities
   
575,064
 
Total operating lease liabilities
  $
824,679
 
 
Other Information
 
 
 
 
Weighted-average remaining lease term for operating leases (in years)
   
2.9
 
Weighted-average discount rate for operating leases
   
12.3
%
 
An initial right-of-use lease asset of
$407,000
was recognized as a non-cash asset addition with the adoption of ASU
2016
-
02.
Cash paid for amounts included in the present value of operating lease liabilities was
$249,000
during the
nine
-month period ended
September 30, 2019
and is included in operating cash flows.