Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.20.2
LEASES
9 Months Ended
Jun. 30, 2020
Leases [Abstract]  
LEASES

NOTE 11 – LEASES

 

Effective October 1, 2019, we adopted ASU No. 2016-02, Leases (Topic 842), and all related amendments (“ASC 842“) using the modified retrospective approach. In July 2018, the FASB approved an optional transition method that removed the requirement to restate prior period financial statements upon adoption of the standard with a cumulative-effect adjustment to retained earnings in the period of adoption and we elected to apply this transition method. As a result, the comparative period information has not been restated and continues to be reported under the accounting standards in effect for the period presented. The adoption of ASC 842 had no impact to our previously reported results of operations or cash flows. 

 

The following table depicts the cumulative effect of the changes made to our September 30, 2019 balance sheet for the adoption of ASC 842 effective on October 1, 2019:

 

    Balance at
September 30, 2019
  Impact of Adoption
of ASC 842
  Adjusted Balance at
October 1, 2019
Assets:            
   Operating lease right of use assets   $     $ 104,363     $ 104,363  
                         
Current Liabilities:                        
   Other (Deferred Credit Office Lease)   $ 42,746     $ (42,746)        
   Current portion of operating lease liabilities   $     $ 74,114     $ 74,114  
                         
Noncurrent Liabilities:                        
   Operating lease liabilities   $     $ 56,565     $ 56,565  
                         
Equity:                        
   Accumulated Deficit   $ (55,582,010)     $ 16,431     $ (55,565,581)  
                         

 

The adoption of ASC 842 primarily resulted in the recognition of operating lease liabilities totaling $130,679, based upon the present value of the remaining minimum rental payments using discount rates as of the adoption date. In addition, we recorded corresponding right-of-use assets totaling $104,363 based upon the operating lease liabilities adjusted for deferred rent and lease incentives. In addition, we recorded a $16,431 cumulative effect of initially adopting ASC 842 as an adjustment to the opening balance of accumulated deficit.