Note 14 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

14.

COMMITMENTS AND CONTINGENCIES

Protexure leases office space in Lisle, Illinois under a non-cancellable lease agreement that commenced on

December 14, 2009

and expires

December 31, 2020.

The lease is renewable at the option of the lessee under certain conditions.

For operating leases that have a lease term of more than

12

months, the Company recognizes a lease liability and a right-of-use asset in the Company's consolidated balance sheets at the present value of the lease payments at the lease commencement date. At the commencement date, the Company determines lease terms by assuming the exercise of those renewal options that are deemed to be reasonably certain. The exercise of lease renewal options is at the sole discretion of the Company. As the lease contracts generally do

not

provide an implicit discount rate, the Company used

6%,

its estimated incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments.

The Company’s lease agreements do

not

contain any material residual value guarantees or material restrictive covenants. For the year ended

December 31, 2019,

the total lease amortization was

$98,800.

 Cash outflows for this lease was

$106,900.

The right of use asset of

$203,618

is included in Prepaid expenses and other assets and the lease liability is included on the Accrued expenses and other liabilities line on Consolidated Balance Sheet as of

December 31, 2019.

Minimum lease payments, subsequent to

December 

31,

2018

are as follows:

2019	$	106,872
2020		109,828
Total	$	216,700

The Company is evaluating its lease needs at the current time.