NOTE 12 – LEASES

The Company has various operating lease agreements, which are primarily for office space. These agreements frequently include one or more renewal options and require the Company to pay for utilities, taxes, insurance and maintenance expense. No lease agreement imposes a restriction on the Company’s ability to engage in financing transactions or enter into further lease agreements. At September 30, 2020, the Company has right-of-use assets of $1.2 million and a total lease liability for operating leases of $1.2 million of which $0.7 million is included in long-term lease liabilities and $0.5 million is included in current lease liabilities.

At September 30, 2020, future minimum lease payments for operating leases with non-cancelable terms of more than one year were as follows (in thousands):

 In January 2019, the Company entered into a new operating lease, resulting in the Company recognizing an operating lease liability of approximately $0.4 million based on the present value of the future minimum rental payments. The Company also recognized corresponding ROU assets of approximately $0.4 million. In April 2019, the Company entered into a lease amendment, resulting in the Company recognizing an additional operating lease liability of approximately $0.1 million based on the present value of the future minimum rental payments. The Company also recognized a corresponding increase to ROU assets of approximately $0.1 million.

In February 2020, the Company entered into a lease amendment, resulting in the Company recognizing an additional operating lease liability of approximately $35,000 based on the present value of the minimum rental payments. The Company also recognized a corresponding increase to ROU assets of approximately $35,000. In April 2020, the Company entered into a new operating lease, resulting in the Company recognizing an operating lease liability of approximately $71,000 based on the present value of the future minimum rental payments. The Company also recognized corresponding ROU assets of approximately $71,000.

In June 2020, the Company entered into a new operating lease, resulting in the Company recognizing an operating lease liability of approximately $35,000 based on the present value of the future minimum rental payments. The Company also recognized corresponding ROU assets of approximately $35,000. In June 2020, the Company entered into lease amendments, resulting in the Company recognizing an additional operating lease liability of approximately $167,000 based on the present value of the future minimum rental payments. The Company also recognized a corresponding increase to ROU assets of approximately $167,000. In July 2020, the Company entered into lease amendments, resulting in the Company recognizing an additional operating lease liability of approximately $11,000 based on the present value of the future minimum rental payments. The Company also recognized a corresponding increase to ROU assets of approximately $11,000. In August 2020, the Company entered into lease amendments, resulting in the Company recognizing an additional operating lease liability of approximately $192,000 based on the present value of the future minimum rental payments. The Company also recognized a corresponding increase to ROU assets of approximately $192,000. In September 2020, the Company entered into a new operating lease, resulting in the Company recognizing an operating lease liability of approximately $676,000 based on the present value of the future minimum rental payments. The Company also recognized corresponding ROU assets of approximately $676,000. Operating lease expense was $0.1 million and $0.3 million for the three and nine months ended September 30 for both reporting periods.

Other information related to leases is as follows: