Quarterly report pursuant to Section 13 or 15(d)

Right-of-use Asset and Lease Liability

v3.20.2
Right-of-use Asset and Lease Liability
9 Months Ended
Sep. 30, 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.

 

Operating lease expense and cash flows from operating leases for the three and nine months ending September 30, 2020 totaled approximately $140,000 and $442,000, respectively. Operating lease expense and cash flows from operating leases for the three and nine months ending September 30, 2019 totaled approximately $147,000 and $422,000, respectively. Operating lease expense is included in the “Other general and administrative” section of the unaudited consolidated statement of operations.

 

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

 

    September 30, 2020     December 31, 2019  
             
Operating leases right-of-use assets   $ 373,121     $ 738,453  
Lease liability, current portion     247,552       453,734  
Lease liability, net of current portion     143,258       302,175  
Total operating lease liabilities   $ 390,810     $ 755,909  
Weighted average remaining lease term     1.67 years       2.25 years  
Weighted average discount rate     7.75 %     7.75 %

 

Future maturities of operating lease liabilities as of September 30, 2020 are as follows:

 

    Operating leases  
       
Remainder of 2020   $ 116,000  
2021     221,000  
2022     103,000  
2023     69,000  
Total lease payments     509,000  
Less: Interest     (118,190 )
Total lease liability   $ 390,810  

 

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. The Dallas, TX lease expired on July 31, 2020 and the Pittsburgh, PA lease is set to expire on October 31, 2020. The other locations have various expiration dates through August 31, 2023.