Commitments and Contingencies
|6 Months Ended|
Jun. 30, 2019
|Commitments and Contingencies Disclosure [Abstract]|
|Commitments and Contingencies||
NOTE 18 – COMMITMENTS AND CONTINGENCIES
The Company is the lessee under five operating leases and three finance leases. These leases contain rent holidays and customary escalations of lease payments for the type of facilities being leased. The Company recognizes rent expense on a straight-line basis over the expected lease term, including cancelable option periods which the Company fully expects to exercise. Certain leases require the payment of property taxes, insurance and/or maintenance costs in addition to the rent payments.
The details of the Company’s operating lease agreements are as follows:
The Company leases machinery and office equipment under finance leases that expire in February 2022 through June 2024 with such terms being a major part of the economic useful life of the leased property.
The components of lease expense for the six months ended June 30, 2019 were as follows:
The weighted average remaining lease term for operating leases is 9.7 years, and for the finance lease is 3.9 years. The weighted average discount rate used to determine the right-of-use assets and lease liabilities was 7.5% for all leases.
Future minimum lease payments as of June 30, 2019 under all non-cancelable operating leases having an initial or remaining term of more than one year were:
Terminated Employment Agreement
An employment agreement with Thomas Kidrin, the former CEO of the Company, that provided Mr. Kidrin with salary, car allowances, stock options, life insurance, and other employee benefits, was terminated by the Company in 2017. The Company maintained an accrual of approximately $1,043,000 at June 30, 2019 and December 31, 2018 for any amounts that may be owed under this agreement, although the Company contends that such agreement is not valid.
In July 2019, Mr. Kidrin, also a former director of the Company, filed a complaint in the Massachusetts Superior Court, alleging that the Company breached the employment agreement and failed to pay all wages owed to him, and requesting compensatory damages, attorney fees, costs, and interest. To date, Mr. Kidrin has not served the complaint upon the Company. The Company believes that the allegations are without merit and will vigorously defend this matter when Mr. Kidrin makes service upon it.
The entire disclosure for commitments and contingencies.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef