Note 12 - Commitments and Contingencies

9 Months Ended

Sep. 30, 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. In

May 2020,

we amended our office lease and extended the expiration from 

August 31, 2020

to

February 28, 2021.

This amendment increased our right of use asset and lease liability by approximately 

$20,200

.

 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,

2020

and

2019,

was approximately

$14,200

 and

$14,700,

respectively and

$46,300

and

$44,100,

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

September 

30,

2020,

the weighted average remaining lease term was approximately

7.0

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

11.3%.

 As of

September 

30,

2020,

the future minimum lease payments are approximately

$14,200

 and

$19,400

for 

2020

and

2021,

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

September 

30,

2020

and

2019,

 net of imputed interest of approximately

$2,300

and

$13,000,

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

three

and

nine

 months ended

September 

30,

2020

was approximately 

$12,900

 and

$42,300,

respectively and

$13,900

and

$42,700,

respectively for

September 

30,

2019.

 

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.