Note 13 - Commitments and Contingencies

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

NOTE

13:

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 a copier system lease and an office lease. Our office lease expired on

February 28, 2021.

On

March 1, 

2021,

the Company entered into a new operating lease for office space to pay monthly rent of

$750

 for a term of

12

months. As a result of COVID-

19,

the Company has adopted a remote work practice. 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,

2021

 and

2020,

was approximately

$10,700

 and

$13,300,

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

March 

31,

2021,

the weighted average remaining lease term was approximately

7.0

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

11.3%.

 As of

March 

31,

2021,

the future minimum lease payments are approximately

$8,694

 for 

2021.

These payments are reported in the condensed consolidated balance sheets at

March 

31,

2021

 and

2020,

 net of imputed interest of 

$681

and

$4,500.

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

three

 months ended

March 

31,

2021

and

2020

was approximately 

$10,700

 and 

$14,700,

respectively.

The Company had lease expense under short term leases of

$5,238

 and

$4,275,

 during for the

three

months ended

March 

31,

2021

 and

2020,

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.