Quarterly report pursuant to Section 13 or 15(d)

Right-of-use Asset and Lease Liability

v3.19.2
Right-of-use Asset and Lease Liability
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Right-of-use Asset and Lease Liability

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

 

In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The Company implemented the new standard effective January 1, 2019.

 

On adoption, 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 current leasing standards for existing operating leases.

 

The consolidated balance sheet at June 30, 2019 reflects current lease liabilities of approximately $483,000 and long-term liabilities of $512,000, with corresponding ROU assets of $973,000.

 

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.

 

 

As of June 30, 2019, maturities of lease liabilities are as follows:

 

Remainder of 2019   $ 240,000  
2020     454,000  
2021     139,000  
2022     94,000  
2023     68,000  
    $ 995,000