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Leases | 12 Months Ended
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Dec. 31, 2020
Leases [Abstract] |
Leases | Leases As a lessee, the Company’s current leases include its master facility lease and immaterial equipment leases, all of which are considered operating leases. The Company (as a sublessor) also subleases portions of its facility to third parties under three separate subleases. All of these subleases have been determined to be operating leases and are accounted for separately from the head lease. Master Facility Lease The Company leases a building in San Diego under an operating lease that expires on December 31, 2021. The lease currently requires fixed monthly rent payments of approximately $78,000, with 3% annual escalation. Facility Subleases As a result of corporate restructurings in previous years, the Company vacated a portion of its facility and has subleased space to third parties under three separate sublease agreements, which all expire December 31, 2021. Income is recognized on a straight-line basis over the term of the sublease. Impairment of Right-of-Use Assets The Company recorded an impairment loss of $34,169 and $0 for the twelve months ending December 31, 2020 and 2019, respectively. The loss related to a vacated portion of the facility that was no longer being subleased. The Company determined that the prolonged loss of sublease income and an adverse commercial real estate market caused by COVID-19 were indicators of impairment. A fair value approach using quoted prices for similar assets was used to determine the impairment loss. The loss was recorded within operating expenses in the statement of operations. The components of lease expense were as follows:
|  |  |  | Twelve Months Ended December 31, 2020 |  | Twelve Months Ended December 31, 2019
Operating lease cost |  |  |  | $ | 441,529 |  |  | $ | 444,878 |
Operating sublease income |  |  |  | (291,173) |  |  | (381,653) |
Net operating lease cost |  |  |  | $ | 150,356 |  |  | $ | 63,225 |
Supplemental balance sheet information related to leases was as follows:
| As of December 31, 2020 |  | As of December 31, 2019
Operating lease ROU assets | $ | 343,001 |  |  | $ | 697,418 |
Current operating lease liabilities | $ | 860,206 |  |  | $ | 865,379 |
Non-current operating lease liabilities | 9,291 |  |  | 860,963 |
Total operating lease liabilities | $ | 869,497 |  |  | $ | 1,726,342 |
Weighted-average remaining lease term–operating leases | 1.0 year |  | 2.0 years
Weighted-average discount rate–operating leases | 6.5 | % |  | 6.5 | %
Supplemental cash flow and other information related to leases was as follows:
| Twelve Months Ended December 31, 2020 |  | Twelve Months Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 943,959 |  |  | $ | 916,762 |
Total remaining annual commitments under non-cancelable lease agreements for each of the years ended December 31 are as follows:
Year Ending December 31, |  | Operating Leases |  | Sublease Income |  | Net Operating Leases
2021 |  | $ | 889,586 |  |  | $ | (403,345) |  |  | $ | 486,241 |
2022 |  | 5,868 |  |  | — |  |  | 5,868 |
2023 |  | 3,423 |  |  | — |  |  | 3,423 |
Total future minimum lease payments |  | 898,877 |  |  | $ | (403,345) |  |  | $ | 495,532 |
Less imputed interest |  | (29,380) |  |  |  |  |
Total |  | $ | 869,497 |  |  |  |  |
Leases | Leases As a lessee, the Company’s current leases include its master facility lease and immaterial equipment leases, all of which are considered operating leases. The Company (as a sublessor) also subleases portions of its facility to third parties under three separate subleases. All of these subleases have been determined to be operating leases and are accounted for separately from the head lease. Master Facility Lease The Company leases a building in San Diego under an operating lease that expires on December 31, 2021. The lease currently requires fixed monthly rent payments of approximately $78,000, with 3% annual escalation. Facility Subleases As a result of corporate restructurings in previous years, the Company vacated a portion of its facility and has subleased space to third parties under three separate sublease agreements, which all expire December 31, 2021. Income is recognized on a straight-line basis over the term of the sublease. Impairment of Right-of-Use Assets The Company recorded an impairment loss of $34,169 and $0 for the twelve months ending December 31, 2020 and 2019, respectively. The loss related to a vacated portion of the facility that was no longer being subleased. The Company determined that the prolonged loss of sublease income and an adverse commercial real estate market caused by COVID-19 were indicators of impairment. A fair value approach using quoted prices for similar assets was used to determine the impairment loss. The loss was recorded within operating expenses in the statement of operations. The components of lease expense were as follows:
|  |  |  | Twelve Months Ended December 31, 2020 |  | Twelve Months Ended December 31, 2019
Operating lease cost |  |  |  | $ | 441,529 |  |  | $ | 444,878 |
Operating sublease income |  |  |  | (291,173) |  |  | (381,653) |
Net operating lease cost |  |  |  | $ | 150,356 |  |  | $ | 63,225 |
Supplemental balance sheet information related to leases was as follows:
| As of December 31, 2020 |  | As of December 31, 2019
Operating lease ROU assets | $ | 343,001 |  |  | $ | 697,418 |
Current operating lease liabilities | $ | 860,206 |  |  | $ | 865,379 |
Non-current operating lease liabilities | 9,291 |  |  | 860,963 |
Total operating lease liabilities | $ | 869,497 |  |  | $ | 1,726,342 |
Weighted-average remaining lease term–operating leases | 1.0 year |  | 2.0 years
Weighted-average discount rate–operating leases | 6.5 | % |  | 6.5 | %
Supplemental cash flow and other information related to leases was as follows:
| Twelve Months Ended December 31, 2020 |  | Twelve Months Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 943,959 |  |  | $ | 916,762 |
Total remaining annual commitments under non-cancelable lease agreements for each of the years ended December 31 are as follows:
Year Ending December 31, |  | Operating Leases |  | Sublease Income |  | Net Operating Leases
2021 |  | $ | 889,586 |  |  | $ | (403,345) |  |  | $ | 486,241 |
2022 |  | 5,868 |  |  | — |  |  | 5,868 |
2023 |  | 3,423 |  |  | — |  |  | 3,423 |
Total future minimum lease payments |  | 898,877 |  |  | $ | (403,345) |  |  | $ | 495,532 |
Less imputed interest |  | (29,380) |  |  |  |  |
Total |  | $ | 869,497 |  |  |  |  |

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- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 1 -URI http://asc.fasb.org/extlink&oid=121580752&loc=d3e38371-112697 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 3 -URI http://asc.fasb.org/extlink&oid=121580752&loc=d3e38371-112697 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
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