Note 12 - Commitments and Contingencies

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

NOTE

12:

COMMITMENTS AND CONTINGENCIES

Lease Commitments

The Company evaluates all contractual agreements at inception to determine if they contain a lease. Lease liabilities are measured 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.

The Company's 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

months ended 

March 

31,

2020

and

2019,

was approximately

$13,300

 and

$12,900,

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

March 

31,

2020,

the weighted average remaining lease term was approximately

9

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

12%.

 As of

March 

31,

2020,

the future minimum lease payments are approximately

$29,500

and

$12,400

for 

2020

and

2021,

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

March 

31,

2020

and

2019,

 net of imputed interest of approximately

$4,500

 and

$12,900,

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

three

months ended

March 

31,

2020

and 

2019,

 was approximately 

$14,700

 and

$14,600,

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.