Annual report pursuant to Section 13 and 15(d)

13. Commitments and Contingent Liabilities

13. Commitments and Contingent Liabilities
12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingent Liabilities

13. Commitments and Contingent Liabilities




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 called for total future minimum rent payments of approximately $52,000 at inception 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 consolidated balance sheet. The Company recognized a ROU asset and a lease liability of approximately $43,000 during the year ended December 31, 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:



Year Ended

December 31,

Operating cash flow information:        
Cash paid for amounts included in the measurement of lease liabilities   $ 23,288  
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   December 31, 2019  
Right-of-use assets   Prepaid expenses and other   $ 20,042  
Current lease liabilities   Accrued expenses and other current liabilities   $ 20,042  
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 the Company’s consolidated financial statements or the Company’s 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 expired in November 2019. During the fourth quarter of 2019, the Company renewed its Miami office lease for twelve-months to November 2020. As this lease has a term of 12-months at inception, the Company will account for it as an operating lease. As of December 31, 2019, total minimum lease payments on this lease was approximately $19,000.