Quarterly report pursuant to Section 13 or 15(d)

Right-of-use Asset and Lease Liability

v3.20.1
Right-of-use Asset and Lease Liability
3 Months Ended
Mar. 31, 2020
Leases [Abstract]  
Right-of-use Asset and Lease Liability

Note 5 – Right-of-use Asset And Lease Liability

 

On January 9, 2019, the Company adopted ASU No. 2016-02 (as amended), and additional current liabilities of approximately $475,000 and long-term liabilities of approximately $713,000 with corresponding ROU assets of approximately $1,167,000 were recognized, based on the present value of the remaining minimum rental payments under the new leasing standards for existing operating leases.

 

The consolidated balance sheet at March 31, 2020 reflects current lease liabilities of approximately $403,000 and long-term liabilities of $222,000, with corresponding ROU assets of $607,000.

 

The audited consolidated balance sheet at December 31, 2019 reflects current lease liabilities of approximately $454,000 and long-term liabilities of $302,000, with corresponding ROU assets of $738,000.

 

The components of lease expense for the three months ended March 31, 2020 and 2019, respectively, are as follows:

 

    Three months ended
March 31,
 
    2020     2019  
Operating lease expense   $ 150,564     $ 136,943  
                 

 

Cash paid for amounts included in the measurement of lease liabilities for the three months ended March 31, 2020 and 2019, respectively, are as follows:

 

    Three months ended
March 31,
 
    2020     2019  
Operating cash flows from operating leases   $ 150,564     $ 136,943  
                 

 

Supplemental balance sheet and other information related to operating leases are as follows:

 

    March 31, 2020     December 31, 2019  
             
Operating leases right-of-use assets   $ 606,897     $ 738,453  
Lease liability, current portion     402,876       453,734  
Lease liability, net of current portion     221,710       302,175  
Total operating lease liabilities   $ 624,586     $ 755,909  
Weighted average remaining lease term     2.16 years       2.25 years  
Weighted average discount rate     7.75 %     7.75 %

 

Future maturities of operating lease liabilities as of March 31, 2020 are as follows:

 

    Operating leases  
       
Remainder of 2020   $ 353,601  
2021     154,559  
2022     102,891  
2023     69,333  
Total lease payments     680,384  
Less interest     (55,798 )
Total   $ 624,586  

 

Operating lease expense and cash flows from operating leases for the three months ended March 31, 2020 and 2019, totaled approximately $150,000 and $137,000, respectively, and are included in the “Other general and administrative” section of the consolidated statement of operations.

 

The Company leases corporate office space in Tampa, FL and Atlanta, GA. The Company also leases medical clinic space in Tampa, FL, Nashville, TN, Scottsdale, AZ, Pittsburgh, PA, and Dallas, TX. The leasing arrangements contain various renewal options that are adjusted for increases in the consumer price index or agreed upon rates. Each location has its own expiration date ranging from April 30, 2020 to August 31, 2023. In May 2020, due to COVID-19, the Company entered into a three-month extension for the lease that expired on April 30, 2020.