Note 13 - Commitments and Contingencies |
12 Months Ended |
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Dec. 31, 2019 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 1 3 : COMMITMENTS AND CONTINGENCIES Lease Commitments As discussed in Note 3, we adopted the requirements of ASU No. 2016 -02, Lease Accounting: Topic 842 , and all related amendments on January 1, 2019. In accordance with Topic 842, we evaluate all contractual agreements at inception to determine if they contain a lease. We measure lease liabilities at present value of lease payments not yet paid, using a discounted cash flow model that requires the use of a discount rate, or incremental borrowing rate.Our operating lease assets consist of an office lease and a copier system lease. Our office lease expires in August of 2020 and our copier system lease expires in October of 2021. None of our leases contain options to extend. Total operating lease expense for the year ended December 31, 2019, was approximately $56,200 and variable lease payments of taxes and insurance were immaterial. As of December 31, 2019, the weighted average remaining lease term was approximately1 12%. As of December 31, 2019, the future minimum lease payments are approximately $44,200 and $12,400 for 2020 and 2021, respectively. These payments are reported in the consolidated balance sheets at December 31, 2019, net of approximately $6,100 of imputed interest. The cash paid for amounts included in the measurement of operating lease liabilities for the year ended December 31, 2019 was approximately $58,800. Prior to January 1, 2019, the Company recorded operating lease rent expense under ASC Topic 840, Leases , on a straight-line basis over the non-cancellable lease term. Rent expense for the year ended December 31, 2018 was approximately $31,500. As of December 31, 2018, the total future minimum lease payments due were $42,228, of which $14,904 and $14,904 were due in 2019 and 2020, respectively, and $12,420 was due in 2021. Litigation and Contingencies On October 10, 2013, a putative securities class action complaint, captioned Cook v. Atossa Genetics, Inc., et al. , No. 2:13 -cv-01836 -RSM, was filed in the U.S. District Court for the Western District of Washington against us, certain of our directors and officers and the underwriters of our November 2012 initial public offering. The complaint alleged that all defendants violated Sections 11 and 12 (a)(2 ), and that we and certain of our directors and officers violated Section 15, of the Securities Act by making material false and misleading statements and omissions in the offering’s registration statement, and that we and certain of our directors and officers violated Sections 10 (b) and 20A of the Exchange Act and SEC Rule 10b -5 promulgated thereunder by making false and misleading statements and omissions in the registration statement and in certain of our subsequent press releases and SEC filings with respect to our NAF specimen collection process, our ForeCYTE Breast Health Test and our MASCT device. The complaint sought, on behalf of persons who purchased our common stock between November 8, 2012 and October 4, 2013, inclusive, damages of an unspecified amount. On March 23, 2018, the parties filed a stipulation of settlement with the court to settle the matter for $3.5 million, completely funded by defendants’ insurers, and on July 20, 2018 the Court approved the settlement. This case is considered closed. We are subject to other legal proceedings and claims that arise in the normal course of business. We believe these matters are either without merit or of a kind that should not have a material effect, individually or in the aggregate, on our financial position, results of operations or cash flows. |