Annual report pursuant to Section 13 and 15(d)

Note 12 - Leases

Note 12 - Leases

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Leases of Lessee Disclosure [Text Block]

12.

Leases

We currently lease approximately

5,000

square feet of office space at

4995

Bradenton Avenue, Dublin, Ohio, as our principal offices, at a monthly base rent of approximately

$3,000.

The current lease term expires in

June 2023.

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, at a monthly base rent of approximately

$27,000

during

2020.

The current lease term expires in

October 2022

with an option to extend for an additional

five

years. The Company does

not

intend to renew this lease. 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 at a monthly payment of approximately

$300,

expiring in

September 2021,

and office equipment at a monthly payment of approximately

$100,

expiring in

October 2024.

We adopted ASU

2016

02,

Leases (Topic

842

)

effective

January 1, 2019.

The following table summarizes the impact of the adoption of ASU

2016

on our balance sheet at

January 1, 2019.

	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	$	—		$	—

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.

The discount rates used for each lease were based principally on the Platinum debt, which was secured and outstanding for most of

2018.

A “build-up” method was utilized where the approach was to estimate the risk/credit spread priced into the debt rate and then adjust that for the remaining term of each lease. Additionally, some market research was completed on the Company's peer group.

Total operating lease expense was

$198,000

and

$229,000

for the years ended

December 31, 2020

and

2019,

respectively. Operating lease expense was recorded in selling, general and administrative expenses on our consolidated statements of operations.

The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company's operating leases as of

December 31, 2020.

Maturity of Lease Liabilities	Operating Lease Payments
2021	$	344,552
2022		291,111
2023		19,699
2024		1,355
Total undiscounted operating lease payments		656,717
Less imputed interest		65,760
Present value of operating lease liabilities	$	590,957

Balance Sheet Classification
Current lease liabilities	$	294,951
Noncurrent lease liabilities		296,006
Total operating lease liabilities	$	590,957

Other Information
Weighted-average remaining lease term for operating leases (years)	1.9
Weighted-average discount rate for operating leases	10.9	%

Cash paid for amounts included in the present value of operating lease liabilities was

$339,000

and

$330,000

during the years ended

December 31, 2020

and

2019,

respectively, and is included in operating cash flows. See Note

(l).