Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies

10. Commitments and Contingencies

Lease Commitments

The Company has one operating lease for its office space which was amended effective January 1, 2019 for a term of 38 months with no residual value guarantees or material restrictive covenants. The amended lease provided for free rent for the first two months of the lease and continues the security deposit of $6,000. In addition to base rental payments included in the contractual obligations table below, the Company is responsible for our pro-rata share of the operating expenses for the building. Our lease cost for the year ended December 31, 2019 was $44,000 and is included in general and administrative expenses. As of December 31, 2019, the right to use lease asset consisted of $84,000 and is included in other assets. Also, at December 31, 2019, current lease liability of $39,000 is included in accrued expenses and other and noncurrent lease liability of $52,000 is in other noncurrent liabilities.

Maturity of operating lease as of December 31, 2019 in thousands:

2020	$	47
2021		48
2022		8
Total		103
Less imputed interest		13
Present value of lease liability	$	90

The discount rate used in calculating the present value of the lease payments was 11.04%.

Legal Proceedings

The Company records accruals for such contingencies to the extent that the Company concludes that their occurrence is probable and the related damages are estimable. There are no pending legal proceedings.