Quarterly report pursuant to Section 13 or 15(d)

Note 10 - Terminated Lease Liability

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Note 10 - Terminated Lease Liability
3 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Terminated Lease Liability Disclosure [Text Block]
10.
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 for the Blazer space (the “Sublease”) 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 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 were 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
three
-month period ended
March 31, 2018
is presented below:
 
 
   
Terminated
Lease
Liability
 
Total liability, January 1, 2018
  $
695,307
 
Changes in estimated future payments
   
(44,755
)
Payments under Blazer lease
   
(93,217
)
Receipts from subtenant
   
117,373
 
Accretion of liability
   
8,690
 
Total liability, March 31, 2018
  $
683,398