Quarterly report pursuant to Section 13 or 15(d)

11. Commitments

11. Commitments
9 Months Ended
Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]  
11. Commitments




The Company determines whether an arrangement is a lease at inception. In January 2019, the Company entered into a sublease and relocated its corporate headquarters from Lexington, Massachusetts to Framingham, Massachusetts. This sublease calls for total future minimum rent payments of approximately $52,000 and has a termination date of September 30, 2020, which corresponds to the underlying base lease. The Company does not have options to extend, termination options or material residual value guarantees. The Company recorded a right-of-use (“ROU”) asset and corresponding lease liability on the condensed consolidated balance sheet. The Company recognized a ROU asset and a lease liability of approximately $43,000 during the nine months ended September 30, 2019. As the sublease does not provide an implicit rate, we used our incremental borrowing rate (10.2%) based on the information available at the lease’s commencement date in determining the present value of lease payments.


Supplemental cash flow information and non-cash activity related to our operating leases are as follows:



Nine Months


September 30,

Operating cash flow information:        
Cash paid for amounts included in the measurement of lease liabilities   $ 16,629  
Non-cash activity:        
Right-of-use assets obtained in exchange for lease obligations   $ 43,330  


Supplemental balance sheet information related to our operating leases is as follows:


    Balance Sheet Classification   September 30, 2019  
Right-of-use assets   Prepaid expenses and other   $ 26,701  
Current lease liabilities   Accrued expenses and other current liabilities   $ 26,701  
Non-current lease liabilities   Other liabilities   $  


The Company did not apply the provisions of ASU 2016-02 to the lease of its former headquarters in Lexington, Massachusetts or its office space lease in Miami, Florida as they did not have a material impact on our condensed consolidated financial statements. The leases would have resulted in a combined increase in total assets of approximately $3,000 and a combined increase in total liabilities of approximately $3,000 in our September 30, 2019 condensed consolidated balance sheet, respectively, and would not have a material impact on our accumulated deficit as of the beginning of 2019. The lease of the Company’s former headquarters expired on January 31, 2019 and the Miami office space lease expires in November 2019. As of September 30, 2019, total minimum lease payments on these leases were approximately $3,000.