Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and are expressed in U.S. dollars.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates include useful lives for property and equipment and related depreciation calculations, estimated amortization periods for payments received from product development and license agreements as they relate to revenue recognition, assumptions for valuing options and warrants, and income taxes. Actual results could differ from those estimates.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

The Company considers all highly-liquid instruments with a stated maturity of

three

months or less at the date of purchase to be cash equivalents. Cash and cash equivalents are stated at cost, which approximates fair value. As of

December 31, 2019,

the Company’s cash and cash equivalents were held in a highly-rated, major financial institution in the United States. As of

December 31, 2018,

the Company’s cash and cash equivalents were held in

two

highly-rated, major financial institutions in the United States.

The following table provides a reconciliation of the cash, cash equivalents, and restricted cash reported in the consolidated balance sheets that sum to the total of the same reported in the consolidated statements of cash flows:

	December 31,		December 31,
	2019		2018
Cash and cash equivalents	$	6,937	$	3,183
Restricted cash included in Other assets		475		475
Total cash, cash equivalents, and restricted cash in the statements of cash flows	$	7,412	$	3,658

The restricted cash amount included in Other assets on the consolidated balance sheets represent amounts held as certificates of deposit for long-term financing and lease arrangements as contractually required by our financial institution and landlord.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentrations of Credit Risk, Major Partners and Customers, and Suppliers

Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains deposits of cash and cash equivalents with a highly-rated, major financial institution in the United States.

Deposits in this bank

may

exceed the amount of federal insurance provided on such deposits. The Company does

not

believe it is exposed to significant credit risk due to the financial position of the financial institution in which the deposits are held.

During the year ended

December 31, 2019,

revenues were derived primarily from sales of Avenova directly to doctors through the Company’s webstore, directly to consumers through Amazon.com, and to pharmacies via

three

major distribution partners and specialty pharmacies. During the years ended

December 31, 2018

and

2017,

revenues were derived primarily from sales of Avenova directly to

three

major distribution partners and to doctors through the Company's webstore.

As of

December 31, 2019,

December 31, 2018

and

December 31, 2017,

revenues from our major distribution or collaboration partners greater than

10%

were as follows:

	Year Ended December 31,
Major distribution or collaboration partner	2019			2018			2017
Distributer A		16	%		23	%		22	%
Distributer B		17	%		26	%		23	%
Distributer C		15	%		25	%		21	%
Collaborator D		*	%		*	%		10	%
Avenova Direct via Amazon		15	%		—	%		—	%

*Not

greater than

10%

As of

December 31, 2019

and

December 31, 2018,

accounts receivable from our major distribution or collaboration partners greater than

10%

were as follows:

	Year Ended December 31,
Major distribution or collaboration partner	2019			2018
Distributer A		28	%		32	%
Distributer B		13	%		31	%
Distributer C		19	%		23	%
Avenova Direct via Amazon		20	%		—	%

The Company relies on

two

contract sole source manufacturers to produce its finished goods. The Company does

not

have any manufacturing facilities and intends to continue to rely on

third

parties for the supply of finished goods. There is a risk however that

third

party manufacturers

may

not

be able to meet the Company’s needs with respect to timing, quantity or quality.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Assets and Liabilities

The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, related party notes payable, a convertible note, and warrants. The fair value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and related party notes payable is carried at cost, which management believes approximates fair value due to the short-term nature of these instruments.

The Secured Convertible Promissory Note issued on

March 26, 2019 (

the “Convertible Note”) is carried at cost, which management believes approximates fair value. Additionally, the derivative liability related to certain embedded features contained within the Convertible Note is carried at fair value. The warrant liability is also carried at fair value.

The Company follows ASC

820,

Fair Value Measurements and Disclosures

, with respect to assets and liabilities that are measured at fair value on a recurring basis and nonrecurring basis. Under this standard, fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The standard also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. There are

three

levels of inputs that

may

be used to measure fair value:

Level

– quoted prices in active markets for identical assets or liabilities;

Level

– quoted prices for similar assets and liabilities in active markets or inputs that are observable; and

Level

– inputs that are unobservable (for example cash flow modeling inputs based on assumptions).

Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block]

Allowance for Doubtful Accounts

The Company charges bad debt expense and records an allowance for doubtful accounts when management believes it unlikely a specific invoice will be collected. Management identifies amounts due that are in dispute, and it believes are unlikely to be collected at the end of each reporting period. At

December 31, 2019

and

December 31, 2018,

management had reserved

$51

thousand and

$10

thousand, respectively, primarily based on specific amounts that are in dispute or were over

120

days past due.

Inventory, Policy [Policy Text Block]

Inventory

Inventory is comprised of (

) raw materials and supplies, such as bottles, packaging materials, labels, boxes and pumps; (

) goods in progress, which are normally unlabeled bottles; and (

) finished goods. We utilize contract manufacturers to produce our products and the cost associated with manufacturing is included in inventory. At

December 31, 2019

and

2018,

management had recorded an allowance for excess and obsolete inventory and lower of cost or estimated net realizable value adjustments of

$247

thousand and

$104

thousand, respectively.

Inventory is stated at the lower of cost or estimated net realizable value determined by the

first

-in,

first

-out method.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets of

five

seven

years for office and laboratory equipment,

three

years for computer equipment and software, and

seven

years for furniture and fixtures. Leasehold improvements are amortized over the shorter of

seven

years or the lease term.

The costs of normal maintenance, repairs, and minor replacements are charged to operations when incurred.

Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block]

Impairment of Long-Lived Assets

The Company accounts for long-lived assets and operating lease right-of-use assets in accordance with ASC

360,

Property, Plant and Equipment

, which requires that companies consider whether events or changes in facts and circumstances, both internally and externally,

may

indicate that an impairment of long-lived assets held for use or right-of-use assets are present. Management periodically evaluates the carrying value of long-lived assets and right-of-use assets. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. In the event that such cash flows are

not

expected to be sufficient to recover the carrying amount of the asset, the assets are written down to their estimated fair values and the loss is recognized in the statements of operations. During the

first

quarter of

2019,

in connection with the restructuring of its U.S. sales force, the Company reviewed its fleet leases for impairment and recorded an impairment charge of

$125

thousand, which is reflected in the results for the year ended

December 31, 2019.

See Note

“Commitments and Contingencies” for further information regarding the impairment. During the

third

quarter of

2019,

the Company recorded an impairment charge of

$32

thousand related to previously capitalized software, which is reflected in the results for the year ended

December 31, 2019.

Lessee, Leases [Policy Text Block]

Leases

February 2016,

the FASB issued ASU

2016

02,

Leases (Topic

842

)

, to enhance the transparency and comparability of financial reporting related to leasing arrangements. The Company adopted the standard effective

January 1, 2019.

Using the optional transition method, prior period financial statements have

not

been recast to reflect the new lease standard.

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically

not

readily determinable. As such, the Company utilizes its incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term, at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use assets

may

be required for items such as initial direct costs paid or incentives received.

The Company has elected to combine lease and non-lease components as a single component for all leases in which it is a lessee or a lessor. The lease expense is recognized over the expected term on a straight-line basis. Operating leases are recognized on the balance sheet as right-of-use assets, operating lease liabilities current and operating lease liabilities non-current. As a result, as of the effective date, the Company

longer recognizes deferred rent on the balance sheet.

Comprehensive Income, Policy [Policy Text Block]

Comprehensive Income (Loss)

ASC

220,

Comprehensive Income,

requires that an entity's change in equity or net assets during a period from transactions and other events from non-owner sources be reported. The Company reports unrealized gains and losses on its available-for-sale securities as other comprehensive income (loss).

Revenue from Contract with Customer [Policy Text Block]

Revenue Recognition

The Company generates product revenue through product sales to its major distribution partners, a limited number of other distributors and via its webstore. Product supply is the only performance obligation contained in these arrangements, and the Company recognizes product revenue upon transfer of control to its major distribution partners at the amount of consideration that the Company expects to be entitled to, generally upon shipment to the distributor on a "sell-in" basis.

Other revenue is primarily generated through commercial partner agreements with strategic partners for the development and commercialization of the Company's product candidates. The terms of the agreements typically include more than

one

performance obligation and generally contain non-refundable upfront fees, payments based upon achievement of certain milestones and royalties on net product sales.

In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under its agreements, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations based on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC Topic

606.

The Company's performance obligations include:

	●	Product supply
	●	Exclusive distribution rights in the product territory
	●	Regulatory submission and approval services
	●	Development services
	●	Sample supply
	●	Incremental discounts and product supply prepayments considered material rights to the customer

The Company has optional additional items in contracts, which are considered marketing offers and are accounted for as separate contracts when the customer elects such options. Arrangements that include a promise for future commercial product supply and optional research and development services at the customer's or the Company's discretion are generally considered options. The Company assesses if these options provide a material right to the licensee and if so, such material rights are accounted for as separate performance obligations.

Transaction Price

The Company has both fixed and variable consideration. Under the Company's license arrangements, non-refundable upfront fees are considered fixed, while milestone payments are identified as variable consideration when determining the transaction price. Product supply selling prices are identified as variable consideration subject to the constraint on variable consideration for estimated discounts, rebates, chargebacks and product returns. Funding of research and development activities are considered variable payments until such costs are reimbursed, at which point they are considered fixed. The Company allocates the total transaction price to each performance obligation based on the relative estimated standalone selling prices of the promised goods or services for each performance obligation.

For product supply under the Company's distribution arrangements, contract liabilities are recorded for invoiced amounts that are subject to significant reversal, including product revenue allowances for cash consideration paid to customers for services, discounts, rebate programs, chargebacks, and product returns. Because the Company does

not

have sufficient historical data to compute its own return rate, the return rate used to estimate the constraint on variable consideration for product returns is based on an average of peer and competitor company historical return rates. The Company updates the return rate assumption quarterly and applies it to the inventory balance that is held at the distributor and has

not

yet been sold through to the end customer. Payment for product supply is typically due

days after control transfers to the customer. At any point in time there is generally

one

month of inventory in the sales channel, therefore uncertainty surrounding constraints on variable consideration is generally resolved

one

month from when control is transferred.

At the inception of each arrangement that includes milestone payments, the Company evaluates whether the milestones are considered probable of being achieved and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would

not

occur and achievement is in the control of the Company (such as a regulatory submission by the Company), the value of the associated milestone is included in the transaction price. Milestone payments that are

not

within the control of the Company, such as approvals from regulators, are

not

considered probable of being achieved until those approvals are received.

For arrangements that include sales-based royalties and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (a) when the related sales occur, or (b) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied).

Allocation of Consideration

As part of the accounting for arrangements that contain multiple performance obligations, the Company must develop assumptions that require judgment to determine the stand-alone selling price of each performance obligation identified in the contract. When a contract contains more than

one

performance obligation, the Company uses key assumptions to determine the stand-alone selling price of each performance obligation. The estimated stand-alone selling prices for distribution rights and material rights for incremental discounts on product supply are calculated using an income approach discounted cash flow model and can include the following key assumptions: forecasted commercial partner sales, product life cycle estimates, costs of product sales, commercialization expenses, annual growth rates and margins, discount rates and probabilities of technical and regulatory success. For all other performance obligations, the Company uses a cost-plus margin approach. The Company allocates the total transaction price to each performance obligation based on the estimated relative stand-alone selling prices of the promised goods or services underlying each performance obligation.

Timing of Recognition

Significant management judgment is required to determine the level of effort required under an arrangement and the period over which the Company expects to complete its performance obligations under the arrangement. If the Company cannot reasonably estimate when its performance obligations either are completed or become inconsequential, then revenue recognition is deferred until the Company can reasonably make such estimates. Revenue is then recognized over the remaining estimated period of performance using the cumulative catch-up method. Revenue is recognized for products at a point in time and for licenses of functional intellectual property at the point in time the customer can use and benefit from the license. For performance obligations that are services, revenue is recognized over time proportionate to the costs that the Company has incurred to perform the services using the cost-to-cost input method.

The Company's intellectual property in the form of distribution rights are determined to be distinct from the other performance obligations identified in the arrangements and considered "right to use" licenses which the customer can benefit from at a point in time. The Company recognizes revenues from non-refundable, up-front fees allocated to the license when the license is transferred to the customer, and the customer can use and benefit from the license.

Cost of Goods Sold, Policy [Policy Text Block]

Cost of Goods Sold

Cost of goods sold includes

third

party manufacturing costs, shipping costs, and other costs of goods sold. Cost of goods sold also includes any necessary allowance for excess and obsolete inventory along with lower of cost and estimated net realizable value.

Research and Development Expense, Policy [Policy Text Block]

Research and Development Costs

The Company charges research and development costs to expense as incurred. These costs include salaries and benefits for research and development personnel, costs associated with clinical trials managed by contract research organizations, and other costs associated with research, development and regulatory activities. Research and development costs

may

vary depending on the type of item or service incurred, location of performance or production, level of availability of the item or service, and specificity required in production for certain compounds. The Company uses external service providers to conduct clinical trials, to manufacture supplies of product candidates and to provide various other research and development-related products and services. The Company’s research, clinical and development activities are often performed under agreements it enters into with external service providers. The Company estimates and accrues the costs incurred under these agreements based on factors such as milestones achieved, patient enrollment, estimates of work performed, and historical data for similar arrangements. As actual costs are incurred, the Company adjusts its accruals. Historically, the Company’s accruals have been consistent with management’s estimates and

material adjustments to research and development expenses have been recognized. Subsequent changes in estimates

may

result in a material change in the Company’s expenses, which could also materially affect its results of operations.

Patent Costs Policy [Policy Text Block]

Patent Costs

Patent costs, including legal expenses, are expensed in the period in which they are incurred. Patent expenses are included in general and administrative expenses in the consolidated statements of operations and comprehensive loss.

Share-based Payment Arrangement [Policy Text Block]

Stock-Based Compensation

The Company’s stock-based compensation includes grants of stock options and RSUs to employees, consultants and non-employee directors. The expense associated with these programs is recognized in the Company’s consolidated statements of stockholders’ equity based on their fair values as they are earned under the applicable vesting terms or the length of an offering period. For stock options granted, the fair value of the stock options is estimated using a Black-Scholes-Merton option pricing model. See Note

13,

“Equity-Based Compensation” for further information regarding stock-based compensation expense and the assumptions used in estimating that expense. The Company accounts for restricted stock unit awards issued to employees and non-employees (consultants and advisory board members) based on the fair market value of the Company’s common stock as of the date of issuance.

Income Tax, Policy [Policy Text Block]

Income Taxes

The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than

not

that some portion or the entire deferred tax asset will

not

be recognized.

Warrant Liabilities [Policy Text Block]

Common Stock Warrant Liabilities

The Company accounts for the issuance of common stock purchase warrants issued in connection with its equity offerings in accordance with the provisions of ASC

815,

Derivatives and Hedging

. The Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) give the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net-cash settle the contract if an event occurs and if that event is outside the control of the Company) or (ii) give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). For warrants that are classified as liabilities, the Company records the fair value of the warrants at each balance sheet date and records changes in the estimated fair value as a non-cash gain or loss in the consolidated statements of operations and comprehensive loss. The fair values of these warrants have been determined using the Black-Scholes valuation method or the Binomial Lattice (“Lattice”) valuation model where deemed appropriate. These values are subject to a significant degree of the Company’s judgment.

January 1, 2019,

the Company adopted ASU

2017

11,

Earnings Per Share (Topic

260

), Distinguishing Liabilities from Equity (Topic

480

) and Derivatives and Hedging (Topic

815

): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception

on a modified retrospective basis. ASU

2017

changes the classification analysis of certain equity-linked financial instruments with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, securities with anti-dilution features

longer preclude equity classification when assessing whether the instrument is indexed to an entity’s own stock. As a result, freestanding equity-linked financial instruments (or embedded conversion features) would

longer be accounted for as liabilities at fair value because of the existence of an anti-dilution feature. Upon adoption of ASU

2017

11,

the Company changed its method of accounting for warrants by reclassifying warrant liabilities related to outstanding warrants that have a down round feature to additional paid in capital, which increased additional paid-in capital by

$56

thousand and decreased warrant liability by

$56

thousand for the year ended

December 31, 2019.

In addition, because of the modified retrospective adoption, the Company recorded a cumulative-effect adjustment of

$356

thousand to the Company’s beginning accumulated deficit as of

January 1, 2019,

with an offset that increased additional paid-in capital by

$356

thousand (see Note

11,

“Warrant Liability”).

Earnings Per Share, Policy [Policy Text Block]

Net Loss per Share

The Company computes net loss per share by presenting both basic and diluted earnings (loss) per share ("EPS").

Basic EPS is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period, including stock options and warrants, using the treasury stock method. In computing diluted EPS, the average stock price for the period is used to determine the number of shares assumed to be purchased from the exercise of stock options or warrants. Potentially dilutive common share equivalents are excluded from the diluted EPS computation in net loss periods because their effect would be anti-dilutive.

During the year ended

December 31, 2019,

both basic and diluted EPS was a net loss of

0.48

per share.

The following table sets forth the calculation of basic EPS and diluted EPS (in thousands, except per share amounts):

	Year Ended December 31,
Numerator	2019			2018			2017
Net loss	$	(9,658	)	$	(6,545	)	$	(7,403	)
Less: Preferred deemed dividend		800			—			—
Less: Retained earnings reduction related to warrants down round feature triggered		29			—			—
Net loss attributable to common stockholders, basic		(10,487	)		(6,545	)		(7,403	)
Less gain on changes in fair value of warrant liability		—			1,311			—
Net loss attributable to common stockholders, diluted	$	(10,487	)	$	(7,856	)	$	(7,403	)

Denominator
Weighted average shares outstanding, basic		21,641			16,921			15,324
Net loss per share, basic	$	(0.48	)	$	(0.39	)	$	(0.48	)

Weighted average shares outstanding, basic		21,641			16,921			15,324
Effect of dilutive warrants		—			137			—
Weighted average shares outstanding, diluted		21,641			17,058			15,324
Net loss per share, diluted	$	(0.48	)	$	(0.46	)	$	(0.48	)

The following outstanding stock options and stock warrants were excluded from the diluted EPS computation as their effect would have been anti-dilutive:

	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Stock options		2,183		3,374		2,960
Stock warrants		8,588		—		544
		10,771		3,374		3,504

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

SEC Disclosure Regulation Simplifications

During the

fourth

quarter of

2018

and

first

quarter of

2019,

the SEC published Final Rule Release

No.

10532,

“Disclosure Update and Simplification” and Final Rule Release

No.

10618,

“Fast Act Modernization and Simplification of Regulation S-K.” These standards, effective for quarterly and annual reports, streamline disclosure requirements by removing certain redundant topics. For the Company, the most notable standard implemented herein is the removal of comparative information for fiscal years

December 31, 2018

and

2017

in the Management’s Discussion and Analysis of Financial Condition and Results of Operations of this Form

-K.

Leases

February 2016,

the FASB issued ASU

2016

02,

Leases (Topic

842

)

, which replaced the prior guidance for 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

months. Disclosure requirements have been enhanced with the objective of enabling financial statement users to assess the amount, timing, and uncertainty of cash flows arising from leases. ASU

2016

became effective for the Company beginning in the

first

quarter of

2019.

The Company has implemented the standard using an optional transition method that allows the Company to initially apply the new leases standard as of the adoption date and recognize a cumulative-effect adjustment to the opening balance of accumulated deficit, if applicable, in the period of adoption. In connection with the adoption, the Company has elected to utilize the package of practical expedients, including

not

reassessing: (

) the lease classification for any expired or existing leases, (

) the treatment of initial direct costs as they relate to existing leases, and (

) whether expired or existing contracts are or contain leases. The Company also elected the practical expedient

not

to separate lease and non-lease components of its operating leases in which it is the lessee.

The adoption of the new leases standard resulted in the following adjustments to the consolidated balance sheet as of

January 1, 2019 (

in thousands):

Prepaid expenses and other current assets (a)	$	(49	)
Operating lease right-of-use assets		2,239
Other assets (b)		(2	)
Other accrued liabilities (c)		(101	)
Operating lease liability		1,063
Deferred rent		(184	)
Operating lease liability - non-current		1,410

	(a)	Represents current portion of prepaid fleet leasing costs reclassified to operating lease right-of-use assets.
	(b)	Represents noncurrent portion of prepaid fleet leasing costs reclassified to operating lease right-of-use assets.
	(c)	Represents current portion of deferred rent and lease incentive liability reclassified to operating lease liability.

The adoption of the new leases standard did

not

impact previously reported financial results because the Company applied the optional transition method and therefore all adjustments were reflected as of

January 1, 2019,

the date of adoption.

July 2017,

the FASB issued ASU

2017

11,

Earnings Per Share (Topic

260

), Distinguishing Liabilities from Equity (Topic

480

), Derivatives and Hedging (Topic

815

): I. Accounting for Certain Financial Instruments with Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception.

Part I applies to entities that issue financial instruments such as warrants, convertible debt or convertible preferred stock that contain down round features. Part II simply replaces the indefinite deferral for certain mandatorily redeemable noncontrolling interests and mandatorily redeemable financial instruments of nonpublic entities contained within ASC

480,

Distinguishing Liabilities from Equity

(“ASC

480”

), with a scope exception and does

not

impact the accounting for these mandatorily redeemable instruments. ASU

2017

is effective for public companies for the annual reporting periods beginning after

December 15, 2018,

and interim periods within those annual periods. The Company adopted ASU

2017

on a modified retrospective basis effective

January 1, 2019.

Upon adoption of ASU

2017

11,

the Company changed its method of accounting for warrants by reclassifying warrant liabilities related to outstanding warrants that have a down round feature to additional paid-in capital on its

March 31, 2019

consolidated balance sheets, and recorded a cumulative-effect adjustment to the Company’s beginning accumulated deficit as of

January 1, 2019 (

see Note

11,

“Warrant Liability”).

June 2018,

the FASB issued ASU

2018

07,

Compensation—Stock Compensation (Topic

718

): Improvements to Nonemployee Share-Based Payment Accounting

. ASU

2018

aligns the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees, with certain exceptions. Under the new standard, equity-classified share-based payment awards issued to nonemployees will be measured on the grant date, instead of the current requirement to remeasure the awards through the performance completion date. The Company adopted ASU

2018

effective

January 1, 2019,

and this guidance had an approximately

thousand impact on the Company’s financial statements.

August 2018,

the FASB issued ASU

2018

13,

Fair Value Measurement (Topic

820

): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement

. ASU

2018

improved the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The standard removes, modifies, and adds certain disclosure requirements. The Company will adopt the new standard effective

January 1, 2020

and does

not

expect the adoption of this guidance to have a material impact on our consolidated financial statements.

June 2016,

the FASB issued ASU

2016

13,

Financial Instruments—Credit Losses (Topic

326

): Measurement of Credit Losses on Financial Instruments

. The amendments in ASU

2016

require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. ASU

2016

is effective for the Company for annual and interim reporting periods beginning

January 1, 2020.

The Company will adopt the new standard effective

January 1, 2023.

We are currently evaluating the impact of the new guidance on our consolidated financial statements.

December 2019,

the FASB issued ASU

2019

12,

Income Taxes (Topic

740

): Simplifying the Accounting for Income Taxes (ASU

2019

)

, which simplifies the accounting for income taxes. This guidance will be effective for us in the

first

quarter of

2021

on a prospective basis. We are currently evaluating the impact of the new guidance on our consolidated financial statements.