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Fixed Assets | 9 Months Ended
--- | ---
Sep. 30, 2017
Property, Plant and Equipment [Abstract] |
Property, Plant and Equipment Disclosure [Text Block] | Note 3 – Fixed Assets Fixed assets are summarized as follows:
|  | September 30, |  | December 31, |
|  | 2017 |  | 2016 |
|  | (unaudited) |  |  |  |
Machinery and equipment |  | $ | 801,000 |  | $ | 662,000 |
Office furniture and equipment |  |  | 163,000 |  |  | 141,000 |
Leasehold improvements |  |  | 145,000 |  |  | 134,000 |
Right of use asset-operating leases |  |  | 518,000 |  |  | 518,000 |
Accumulated depreciation and amortization |  |  | (1,073,000) |  |  | (894,000) |
|  |  | 554,000 |  |  | 561,000 |
Construction in progress |  |  | - |  |  | 83,000 |
|  | $ | 554,000 |  | $ | 644,000 |
In February 2016, the Financial Accounting Standards Board issued ASU No. 2016-02 regarding leases for the purpose of providing more comprehensive and standardized presentation of an entity’s cost of property essential to its operations and its related funding. The new standard requires lessee recognition on the balance sheet of a right-of-use asset and a lease liability, initially measured at the present value of the lease payments. It further requires recognition in the income statement of a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis. Finally, it requires classification of all cash payments within operating activities in the statements of cash flows. It is effective for fiscal years commencing after December 15, 2018 and early adoption is permitted. Management has elected early adoption of this standard to minimize the eventual cost of implementation. The Company has a triple net operating lease for office and laboratory space in Seattle, Washington through March 2020. This lease was modified in November 2016 to extend its term from February 2017 to March 2020. Rent escalated annually by 3% through February 2017 and remains at a constant rate thereafter of $12,000 per month plus triple net operating costs. The Company also has a triple net operating lease for office space in Tulsa, Oklahoma with a term that began in September 2016 and will expire in August 2019 with monthly rent of $2,000 per month plus triple net operating costs. Both leases include lessee renewal options for three years at the then prevailing market rate. With the retroactive adoption of ASU No. 2016-02, the new lease standard was applied to the Tulsa lease in September 2016, the commencement of the lease term, and to the Seattle lease in November 2016, the time of the lease modification. A leasehold interest and corresponding lease liability was recognized related to the Tulsa lease and the Seattle lease retroactively in 2016 in the amounts of $71,000 and $447,000, respectively. These reflect the lease commitments over the lease term discounted at the Company’s estimated incremental borrowing rate of 5% per annum. The lessee renewal options were not included in the lease term as they were not considered to be reasonably probable of exercise nor measurable. In 2016, accumulated amortization of these assets amounted to $19,000 and principal payments of the lease liabilities amounted to $17,000. There was no meaningful effect on the 2016 results of operations or the December 31, 2016 accumulated deficit. Management elected to apply the practical expedients in the adoption of ASU No. 2016-02 and to not apply the standard to short-term leases. Lease costs for the three and nine months ended September 30, 2017 and 2016 and other quantitative disclosures are as follows:
|  | For the three months ended September 30, |  | For the nine months ended September 30, |
|  | 2017 |  | 2016 |  | 2017 |  | 2016 |
Lease cost: |  |  |  |  |  |  |  |  |  |  |  |  |
Operating lease cost |  | $ | 54,000 |  | $ | 42,000 |  | $ | 161,000 |  | $ | 122,000 |
Short-term lease cost |  |  | 40,000 |  |  | 4,000 |  |  | 47,000 |  |  | 21,000 |
Total lease cost |  | $ | 94,000 |  | $ | 46,000 |  | $ | 208,000 |  | $ | 143,000 |
Other information: |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from operating leases |  | $ | 129,000 |
Right-of-use assets obtained in exchange for new operating lease liabilities |  |  |  |
For operating lease: |  |  |  |
Weighted average remaining lease term (in years) |  |  | 2.43 |
Weighted average discount rate |  |  | 5.00 | %
Minimum future payments under the Company’s leases at September 30, 2017 and their application to the corresponding lease liabilities are as follows:
|  |  |  |  | Payments due |
|  | Discounted lease |  | under lease |
|  | liability payments |  | agreements |
2017 |  | $ | 38,000 |  | $ | 43,000 |
2018 |  |  | 159,000 |  |  | 173,000 |
2019 |  |  | 158,000 |  |  | 164,000 |
2020 |  |  | 37,000 |  |  | 37,000 |
Total |  | $ | 392,000 |  | $ | 417,000 |

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- References No definition available. + Details
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- Definition The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 + Details
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