Note 11 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

NOTE

11:

COMMITMENTS AND CONTINGENCIES

Lease Commitments

As discussed in Note

3,

we adopted the requirements of ASU

No.

2016

-

02,

Lease Accounting: 

Topic

842

, 

and all related amendments on

January 1, 2019.

Prior to

January 1, 2019,

we accounted for leases in accordance with ASC Topic

840,

Leases

. In accordance with Topic

842,

we evaluate all contractual agreements at inception to determine if they contain a lease. We measure lease liabilities at present value of lease payments

not

yet paid, using a discounted cash flow model that requires the use of a discount rate, or incremental borrowing rate.

Our operating lease assets consist of an office lease and a copier system lease. Our office lease expires in 

August

of

2020

and our copier system lease expires in

October

of

2021.

None

of our leases contain options to extend. Total operating lease expense for the

three

and

nine

 months ended

September 30, 2019,

was approximately

$14,700

 and

$44,100

and variable lease payments of taxes and insurance were immaterial.  As of

September 30, 2019,

the weighted average remaining lease term was approximately

1.2

 years and the weighted average discount rate of our operating leases was

12%.

 As of

September 30, 2019,

the future minimum lease payments are approximately

$15,000,

$44,000

and

$12,000

for 

2019,

2020

and

2021,

respectively. These payments are reported in the condensed consolidated balance sheets at

September 30, 2019, 

net of approximately

$13,000

of imputed interest. The cash paid for amounts included in the measurement of operating lease liabilities for the

three

and

nine

 months ended

September 30, 2019

was approximately

$13,900

 and

$42,700,

respectively.

Litigation and Contingencies

 We are subject to legal proceedings and claims that arise in the normal course of business. We believe these matters are either without merit or of a kind that should

not

have a material effect, individually or in the aggregate, on our financial position, results of operations or cash flows.