Effects of Adopting ASU Topic 842 - Leases

12 Months Ended

Dec. 31, 2019

Effects of Adopting ASU Topic 842 - Leases [Abstract]

Effects of Adopting ASU Topic 842 - Leases

Note 14 – Effects of Adopting ASU Topic 842 - Leases

We determine if an arrangement is a lease at inception. Operating lease ROU assets are included in Prepaid expense and other assets on the Consolidated Balance Sheet as of December 31, 2019. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term.

We lease office space under an operating lease which expires on October 31, 2021. We also entered an operating lease for a facility used for corporate promotional and marketing purposes which was prepaid in full in a prior year and expires in 2024.

As described under New Accounting Pronouncements above, we adopted ASU Topic 842 - Leases effective January 1, 2019. As a result of the adoption, on January 1, 2019 we reclassified $385 of prepaid lease payments for the promotional and marketing facility from current assets to non-current assets. At January 1, 2019 we recorded a ROU asset and lease liability of $45 for the office lease with a balance of $97 at December 31, 2019. Adoption of the ASU had no impact on the Consolidated Statement of Operations.