Lease Obligations

3 Months Ended

Mar. 31, 2020

3. Lease Obligations

We currently lease approximately 6,500 square feet of retail/office space in Seattle, Washington for our principal executive and administrative offices. The initial term of the five-year lease was set to expire in February 2020. On February 4, 2020, we amended the lease to continue to occupy the same premises for our headquarters through February 28, 2025. As a result of the lease amendment, we recognized on March 1, 2020, a lease liability and right-of-use asset of $556,000 which represents the remaining lease payments discounted at 4%. As of March 31, 2020, this lease has a remaining lease term of 4.92 years.

During the quarters ended March 31, 2020 and 2019, we incurred rental expenses of $37,000 and $34,000 respectively. During the quarters ended March 31, 2020 and 2019, we made cash payments of $38,000 and $35,000, respectively. Cash payments on our operating lease are presented as operating cash outflows in the condensed consolidated statement of cash flows.

As of March 31, 2020, our scheduled lease payments excluding management fees and other operational expenses for the remainder of the lease term for the years ending December 31 will be as follows (in thousands):


2020	$	87
2021		119
2022		122
2023		126
2024		130
2025		22
Total lease payments		606
Less: imputed interest		(59)
Total remaining lease liability	$	547