Commitments and Contingencies
|12 Months Ended|
Dec. 31, 2021
|Commitments and Contingencies Disclosure [Abstract]|
|Commitments and Contingencies||
The Company determines whether an arrangement is a lease at inception. On October 1, 2020, the Company entered into a 2 two-year lease for its corporate headquarters in Framingham, Massachusetts. This lease called for total future minimum rent payments of approximately $78,000 at inception and has a termination date of September 30, 2022. 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 $71,000 during the year ended December 31, 2020. 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:
Supplemental balance sheet information related to our operating leases is as follows:
The Company did not apply the provisions of ASU 2016-02 to the lease of its office space lease in Miami, Florida. Effective November 1, 2021, the Company renewed its Miami office lease for twelve-months to November 2022. 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, 2021, total minimum lease payments on this lease was approximately $23,000.
The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef