Note 5 - Operating Lease Right-of-use Asset, Net

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

(5) Operating Lease Right-of-Use Asset, Net

The Company’s operating lease is a property lease for its laboratory and corporate offices. BioCardia’s lease agreement does not contain any material residual guarantees or material restrictive covenants, nor does it contain an additional lease extension. The Company determines if an arrangement is a lease at inception by assessing whether it conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Right-of-use (ROU) assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The Company’s lease does not provide an implicit rate. The Company used an adjusted historical incremental borrowing rate, based on the information available at the approximate lease commencement date, to determine the present value of lease payments. Variable rent expense is made up of expenses for common area maintenance and shared utilities and were not included in the determination of the present value of lease payments. The Company has no finance leases.

The lease expense for the three and six months ended June 30, 2021 was $150,000 and $301,000, respectively. The lease expense for the three and six months ended June 30, 2020 was $150,000 and 301,000, respectively. The cash paid under the operating lease during the three and six months ended June 30, 2021 was $162,000 and $324,000, respectively. The cash paid under the operating lease during the three and six months ended June 30, 2020 was $158,000 and $315,000, respectively. On June 30, 2021, the weighted average remaining lease term was 0.5 years, and the weighted average discount rate was 12.05%.

Future minimum lease payments under the operating lease as of June 30, 2021 are as follows (in thousands):

	Operating Lease June 30, 2021
Remainder of 2021
Total undiscounted lease payments	$	324
Less imputed interest		8
Total operating lease liabilities	$	316