Quarterly report pursuant to Section 13 or 15(d)

Note 11 - Terminated Lease Liability

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Note 11 - Terminated Lease Liability
9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Terminated Lease Liability Disclosure [Text Block]
1
1
.
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
no
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 recorded a total liability of $
1.0
million, which is 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
$429,000
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
nine
-month periods ended
September 30, 2017.
 
A summary of the
changes in our terminated lease liability during the
nine
-month period ended
September 30, 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
 
Payment
of finder’s fees
   
(152,584
)
Payments under Blazer lease
   
(188,847
)
Receipts from subtenant
   
78,248
 
Accretion of liability
   
12,813
 
Total
liability, September 30, 2017
  $
773,676