|6 Months Ended|
Jun. 30, 2019
|Lessee, Operating Leases [Text Block]||
Note 8. Leases
Under Topic 842, a contract is a lease, or contains a lease, if the contract conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. To determine whether a contract conveys the right to control the use of an identified asset for a period of time, an entity shall assess whether, throughout the period of use, the entity has both of the following: (a) the right to obtain substantially all of the economic benefits from use of the identified asset; and (b) the right to direct the use of the identified asset.
The Company leases office facilities under operating leases. Our principle executive office in New York City is under a month to month arrangement. The Company’s office lease has a remaining lease of less than one year. Leases with a probable term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. As a practical expedient, the Company elected, for all office and facility leases, not to separate nonlease components (e.g., common-area maintenance costs) from lease components (e.g., fixed payments including rent) and instead to account for each separate lease component and its associated non-lease components as a single lease component. The Company uses its incremental borrowing rate for purposes of discounting lease payments.
Lease expense for the quarters ended June 30, 2019 and 2018 was approximately $11,000 and $26,000, respectively.
Lease expense for the six months ended June 30, 2019 and 2018 was approximately $16,000 and $31,000, respectively.
On January 1, 2019, the Company adopted Topic 842 using the modified retrospective approach. The Company recorded operating lease assets (right-of-use assets) of approximately $53,000 and operating lease liabilities of approximately $53,000. There was no impact to the accumulated deficit upon adoption of Topic 842.
We have operating leases for corporate, business and technician offices.Leases with a probable term of 12 months or less, including month-to-month agreements
, are not recorded on the consolidated balance sheet, unless the arrangement includes an option to purchase the underlying asset, or an option to renew the arrangement, that we are reasonably certain to exercise (short-term leases). Our leases have remaining lease terms of
oneto 15 months, none of which include options to extend the leases without a new arrangement.
As ofJune 30
, 2019, assets recorded under operating leases were approximately $32,000,which is included as a component of prepaid expenses and other assets. Operating lease right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to determine the commencement date present value of lease payment is our incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received.
The following table presents supplemental consolidated balance sheet information related to our operating leases:
For the three and six months endedJune 30
, 2019, the components of lease expense were as follows:
Other information related to leases was as follows:
The maturity analysis of the Company’s annual undiscounted cash flows of operating lease liabilities as of June 30, 2019 are as follows:
There were no commitments for non-cancelable operating leases as of December 31, 2018 or June 30, 2019.
As of June 30, 2019, we have no additional operating leases, than that noted above, and no financing leases.
The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef