Note 3 – Fixed Assets

Fixed assets are summarized as follows:

	March 31,		December 31,
	2018		2017
	(unaudited)
Machinery and equipment	$	802,000	$	801,000
Office furniture and equipment		168,000		167,000
Leasehold improvements		147,000		147,000
Right of use asset-operating leases		518,000		518,000
Accumulated depreciation and amortization		(1,194,000)		(1,135,000)
		441,000		498,000
Construction in progress		-		-
	$	441,000	$	498,000

The Company has a triple net operating lease for office and laboratory space in Seattle, Washington through March 2020 with rent 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 through 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.

Lease costs for the three months ended March 31, 2018 and 2017 and other quantitative disclosures are as follows:

	For the three months ended March 31,
	2018		2017
Lease cost:
Operating lease cost	$	53,000	$	55,000
Short-term lease cost		-		-
Total lease cost	$	53,000	$	55,000

Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases			$	43,000

For operating lease:
Weighted average remaining lease term (in years)				1.94
Weighted average discount rate				5.00	%

Minimum future payments under the Company’s leases at March 31, 2018 and their application to the corresponding lease liabilities are as follows:

			Payments due
	Discounted lease		under lease
	liability payments		agreements
2018	$	120,000	$	130,000
2019		158,000		164,000
2020		37,000		37,000
Total	$	315,000	$	331,000