|3 Months Ended|
Mar. 31, 2020
Note 7 – Leases
The Company leases an office in Fort Lauderdale, Florida under an operating lease. The term expires November 2024. The annual base rent is subject to annual increases of 2.75%. As described within Note 10, we share this space with a related party pursuant to the Shared Space Agreement, as defined below.
The Company leases an office in Israel under an operating lease. The term expires on December 31, 2022. The annual base rent is subject to increases of 4%.
The Company leases vehicles under operating leases that expire at various dates through 2022.
Many of these leases provide for payment by the Company, as the lessee, of taxes, insurance premiums, costs of maintenance and other costs which are expenses as incurred. Certain operating leases include escalation clauses and some of which may include options to extend the leases for up to 3 years.
On March 11, 2020, the Company entered into a lease for a facility in Norwood, Massachusetts. The Company expected to begin occupying the facility on or about June 11, 2020. Prior to occupying the space and a commencement date being established, on March 30, 2020, the Company executed a lease termination agreement with the landlord of the facility for the early termination of the lease. The termination agreement requires the Company to pay a termination fee and releases the Company from any further obligations under the lease, effective upon the payment of the termination fee. A termination fee of $170 was paid, included in general and administrative expense, to the landlord on March 30, 2020, in connection with the termination agreement.
The components of lease cost and supplemental balance sheet information for the Company’s lease portfolio were as follows:
The Company records operating lease payments to lease expense using the straight-line method. The Company’s lease expense was $84 and $90 for the three months ended March 31, 2020 and 2019, respectively, included in general and administrative expenses which is net of the related party license fee of $35 for the three months ended March 31, 2020 (see Note 10).
Future minimum lease payments under non-cancellable operating leases as of March 31, 2020 were as follows:
Future minimum lease payments under non-cancellable operating leases as of December 31, 2019 were as follows:
Future minimum receipts under the related party license fee as of March 31, 2020 were as follows:
The entire disclosure for lessor's operating leases.
Reference 1: http://www.xbrl.org/2003/role/exampleRef