Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.19.2
Leases
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
LEASES

Note 13 – LEASES

 

Operating Leases

 

The Company has operating leases for its executive office and office equipment. The remaining terms on these leases range from 4 to 5 years. The Company entered into an operating lease in August 2012, which was amended in March 2019, for its executive office located at 45 Horsehill Road, Suite 106, Hanover Township, Morris County, New Jersey, which consists of approximately 5,225 square feet of space. The lease agreement expires in December 2022 and contains an additional three year option to extend the lease and annual escalating payments. We use a discount rate of 12% to calculate the right of use asset and operating lease liability recorded on our condensed consolidated balance sheet. The Company uses this facility as its corporate headquarters, and as a research and manufacturing facility.

 

The Company's office equipment operating lease is for a copier and the agreement expires in November 2023. The components of lease expense of $32 for the six months ended June 30, 2019 were recorded in the condensed consolidated statement of operations.

 

The following table provides a breakdown of lease balances within the condensed consolidated balance sheet as of June 30, 2019:

 

    June 30,
2019
 
Operating lease right of use asset   $ 213  
         
Operating lease liability:        
Lease Liability : current   $ 46  
Lease Liability : non-current     172  
Total operating lease liability   $ 218  

 

Other information related to leases are as follows:

 

    June 30,
2019
 
Cash paid for rent included in the measurement of operating lease liabilities cash flows   $ 38  
         
Right-of-use asset obtained in exchange for new operating lease liability     -  
         
Weighted-average remaining lease term- operating leases, in years     3.79  
         
Weighted-average discount rate - operating leases     11.7 %

 

Future minimum lease payments for operating leases with initial or remaining noncancellable lease terms in excess of one year as of June 30, 2019 are as follows: 

 

For years ending   Amount  
2019 (remaining six months)   $ 43  
2020     69  
2021     77  
2022     80  
2023     3  
Total future minimum lease payments   $ 272  
Imputed interest     (54 )
Total Lease Liability   $ 218  

 

There were no material operating leases that the Company had entered into and that were yet to commence as of June 30, 2019.