Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies

Commitments and Contingencies
12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies


13. Commitments and Contingencies




The Company determines whether an arrangement is a lease at inception. On October 1, 2020, the Company entered into a 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: 


Year Ended

December 31,


Year Ended

December 31,

    2021     2020  
Operating cash flow information:                
Cash paid for amounts included in the measurement of lease liabilities   $ 35,482     $ 28,080  
Non-cash activity:                
Right-of-use assets obtained in exchange for lease liabilities   $     $ 70,564  


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

    Balance Sheet Classification   December 31, 2021     December 31, 2020  
Right-of-use assets - ST   Prepaid expenses and other   $ 27,043     $ 35,482  
Right-of-use assets - LT   Other assets   $     $ 27,043  
Current lease liabilities   Accrued expenses and other current liabilities   $ 27,043     $ 35,482  
Non-current lease liabilities   Other liabilities   $     $ 27,043  


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.