RIGHT-OF-USE ASSETS, LEASE OBLIGATIONS, AND OTHER LEASES

6 Months Ended

Jun. 30, 2020

RIGHT-OF-USE ASSETS, LEASE OBLIGATIONS, AND OTHER LEASES

RIGHT-OF-USE ASSETS, LEASE OBLIGATIONS, AND OTHER LEASES

NOTE 4. - RIGHT-OF-USE ASSETS, LEASE OBLIGATIONS, AND OTHER LEASES

On January 1, 2019, the Company adopted ASU 2016-02, Subtopic ASC 842, Leases (the “new guidance”) and elected to use the practical expedient which allowed the Company to carry forward the historical lease classifications of the existing leases as of adoption. Our lessee right of use (ROU) assets represent our right to use an underlying asset and our lease liabilities represent our obligation to make lease payments.

The Company leases a manufacturing facility and warehouse in North Carolina, a corporate office space in Williamsville, New York, and a laboratory space in Buffalo, New York. The ROU assets and lease liabilities for these operating leases are recognized as of the commencement date at the net present value of the fixed minimum lease payments for the lease term. The discount rate used is the interest rate implicit in the lease, if available, or the Company’s incremental borrowing rate which is determined using a base line rate plus an applicable spread.

The following table summarizes the Company’s discount rate and remaining lease terms:

Weighted average remaining lease term in years	2.4
Weighted average discount rate	4.8	%

Future minimum lease payments as of June 30, 2020 are as follows:

2020	$	173
2021		324
2022		92
2023		88
2024		15
Total lease payments		692
Less: imputed interest		(41)
Total	$	651