Note K - Leases

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Lease Disclosure [Text Block]

K. Leases

The Company has operating and finance leases for office space, laboratory facilities and various laboratory equipment, furniture and office equipment and leasehold improvements. The Company's leases have remaining lease terms of less than

1

year to approximately 

5

years, some of which include options to extend the leases for up to

5

years, and some which include options to terminate the leases within

1

year. In

February 2020,

the Company agreed to sublease office space in Florida, comprised of

one

of the

two

contiguous suites, under a non-cancelable operating lease, which expires in

February 2026.

In

October 2020,

the Company agreed to terminate this sublease, in exchange for a termination payment, due to financial difficulties encountered by the subtenant as a result of COVID-

19.

The components of lease expense were as follows (in thousands): 

	Three months ended September 30,						Nine months ended September 30,
Lease Cost	2020			2019			2020			2019
Finance lease cost:
Amortization of right-of-use assets	$	31		$	31		$	92		$	92
Interest on lease liabilities		4			9			19			31
Total finance lease cost		35			40			111			123
Operating lease cost		91			124			272			372
Short-term lease cost		49			58			160			173
Variable lease cost		14			14			41			35
Less: sublease income		(40	)		(25	)		(93	)		(75	)
Total lease costs	$	149		$	211		$	491		$	628

Supplemental cash flow information related to leases was as follows (in thousands):

	Nine months ended September 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	19	$	31
Financing cash flows from finance leases		168		157
Operating cash flows from operating leases		334		326
Operating cash flows from short-term leases		160		173
Operating cash flows from variable lease costs		41		35
Right-of-use assets obtained in exchange for lease liabilities:
Finance leases	$	—	$	737
Operating leases		20		1,852

Supplemental balance sheet information related to leases was as follows (in thousands, except weighted average remaining lease term and weighted average discount rate):

	September 30,			December 31,
	2020			2019
Finance Leases
Property and equipment, at cost	$	1,013		$	1,013
less: accumulated depreciation and amortization		(490	)		(398	)
Property and equipment, net	$	523		$	615
Other current liabilities	$	214		$	236
Other long-term liabilities		22			168
Total finance lease liabilities	$	236		$	404
Operating Leases
Operating lease right-of-use assets	$	1,357		$	1,537
Total operating lease right-of-use assets	$	1,357		$	1,537
Current portion of operating lease liabilities	$	318		$	284
Operating lease liabilities, less current portion		1,673			1,901
Total operating lease liabilities	$	1,991		$	2,185
Weighted Average Remaining Lease Term
Finance leases (years)		1			2
Operating leases (years)		5			6
Weighted Average Discount Rate
Finance leases		7.8	%		7.7	%
Operating leases		7.5	%		7.5	%

Maturities of lease liabilities were as follows (in thousands):

	Finance			Operating
Year Ending December 31,	Leases			Leases
2020 (excluding the nine months ended September 30, 2020)	$	73		$	114
2021		163			460
2022		11			463
2023		—			472
2024		—			484
Thereafter		—			420
Total lease payments		247			2,413
Less: future interest expense		(11	)		(422	)
Lease liabilities	$	236		$	1,991