7. Leases

In February 2016, the FASB issued ASU No. 2016-02, Leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. The Company adopted ASU No. 2016-02 on January 1, 2019.

The Company has no finance leases and one operating lease for office space in Princeton, NJ. Operating lease expense was $38,000 and $48,000 for the three months ended March 31, 2021 and 2020, respectively.

Operating cash flows used for operating leases during the three months ended March 31, 2021 and 2020 were $32,000 and $44,000 respectively. As of March 31, 2021, the weighted-average remaining lease term was 0.75 years and the weighted average discount rate was 15.2%.

Future minimum lease payments under non-cancellable leases as of March 31, 2021 were as follows:


2021	$	113
Total	$	113
Less: Interest		(7)
Present value of lease liability	$	106