Changes in Significant Accounting Policies

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Changes in significant accounting policies

3. Changes in significant accounting policies:

The Company adopted the new lease standard (Accounting Standards Codification “ASC” 842), effective January 1, 2019, using the transition method under which previously presented financial statements are not restated and the cumulative effect of adopting the new lease standard on leases existing as of, or entered into after January 1, 2019, is recognized by an adjustment to retained earnings at the effective date. Consequently, comparative periods have been accounted for in accordance with the previous lease standard and the disclosures are in accordance with ASC 840.  

In addition, the Company elected to apply the package of practical expedients which allows entities not to reassess its previous conclusions about lease identification, lease classification, and initial direct costs. The Company elected not to use hindsight to determine lease terms and to not separate non-lease components from the associated lease component. The new lease standard only impacted the Company’s one operating lease for its premises. Adoption of the new lease standard resulted in recognition of a right-of-use asset of $1,333 and a lease liability of $1,453, as of January 1, 2019. The difference between the right-of-use asset and lease liability relates to the balance of deferred tenant inducements. In addition, a cumulative effect adjustment of $175 was recorded to opening retained earnings. The adoption of the new lease standard did not materially impact the consolidated statement of operations and comprehensive loss or the consolidated statement of cash flows. For additional disclosure and detail, see note 6 below.