XML 62 R13.htm IDEA: XBRL DOCUMENT

7. LEASES

3 Months Ended

Mar. 31, 2020

In April 2018, we entered into a 10-year lease agreement for a new 9,000-square-foot facility that contains office, warehouse, lab and research and development space in Frederick, Maryland. The lease agreement was scheduled to commence on December 1, 2018 or when the property was ready for occupancy. The agreement provided for annual rent of $143,460, an escalation clause that increases the rent 3% year over year, a landlord tenant improvement allowance of $405,000 and additional landlord work as discussed in the lease agreement. We took occupancy of the property on December 17, 2018 and the lease was amended in March 2019 to provide for a 4-month rent holiday and a commencement date of April 1, 2019. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term.

The balances for our operating lease where we are the lessee are presented as follows within our condensed consolidated balance sheet:

Operating leases:	March 31, 2020 (Unaudited)		December 31, 2019
Assets:
Operating lease right-of-use asset	$	664,198	$	674,471
Liabilities:
Current Portion of Long-Term Operating Lease	$	73,851	$	71,510
Long-Term Operating Lease, Net of Current Portion		1,015,465		1,034,413
	$	1,089,316	$	1,105,923

The components of lease expense are as follows within our condensed consolidated statement of operations:

	Three Months Ended March 31, 2020 (Unaudited)		Three Months Ended March 31, 2019 (Unaudited)

Operating lease expense	$	39,329	$	39,644

Other information related to leases where we are the lessee is as follows:

	March 31, 2020 (Unaudited)			December 31, 2019
Weighted-average remaining lease term:
Operating leases		9.00 years			9.25 years

Discount rate:
Operating leases		7.00	%		7.00	%

Supplemental cash flow information related to leases where we are the lessee is as follows:

Three Months Ended March 31, 2020

(Unaudited)

Three Months Ended March 31, 2019

(Unaudited)

Cash paid for amounts included in the measurement of lease liabilities:

35,865

As of March 31, 2020, the maturities of our operating lease liability are as follows:

Year Ended:	Operating Lease
April 1 – December 31, 2020	$	110,823
December 31, 2021		151,088
December 31, 2022		155,621
December 31, 2023		160,290
December 31, 2024		165,098
Thereafter		745,183
Total minimum lease payments		1,488,103
Less: Interest		398,787
Present value of lease obligations		1,089,316
Less: Current portion		73,851
Long-term portion of lease obligations	$	1,015,465