Milestone Scientific has informal arrangements with -party manufacturers of the STA, epidural, and intra-articular devices, pursuant to which they manufacture these products under specific purchase orders but without any long-term contract or minimum purchase commitment. As of the purchase order commitment for dental instruments was  and advances of  are reported in inventory advances.
 

In the company entered a new purchase commitment for the delivery of Epidural instruments beginning in As of we have an open purchase order of for Epidural instruments and have advanced  against this purchase commitment. In the company entered a new purchase commitment for the delivery of cases of Epidural and Cathcheck disposable kits beginning in As of we have an open purchase order of for cases of Epidural and Cathcheck disposable kits and have advanced  against this purchase commitment.

 

 

 

In the Company amended its original office lease for its headquarters in Livingston, New Jersey. Under the amendment, the Company leased an additional square feet of rentable area of the building and extended the term of the lease through at a monthly cost of The Company had an option to further extend the term of the lease, however, this option was included in the determination of the lease's right-of-use asset or lease liability. Per the terms of the lease agreement, the Company does have a residual value guarantee. The Company will also be required to pay its proportionate share of certain operating costs and property taxes applicable to the leased premises in excess of new base year amounts. These costs are considered to be variable lease payments and are included in the determination of the lease's right-of-use asset or lease liability. 

 

In the Company made the decision to renew the its existing office lease for its corporate headquarters located in Livingston, New Jersey and instead signed a new () year lease in a new facility located in Roseland, New Jersey (the “Roseland Facility”), which commenced of Under the Roseland Facility lease, rent payments commence on and the monthly lease payments escalate annually on of each year, and range from to per month over the lease term. The Company is also required to pay a fixed electric charge equal to per square foot which is  paid in equal monthly installments over the lease term or annually. These fixed monthly payments have been included in the measurement of the operating lease liability and related operating lease right-of-use asset as the Company has elected the practical expedient to separate lease and non-lease components for all leases. The Company is also required to pay its proportionate share of certain operating costs and property taxes applicable to the leased premises in excess of new base year amounts, which are accounted for as variable lease expenses. 

 

As of total operating lease right-of-use assets were and total operating lease liabilities were of which and were classified as current and non-current, respectively. As of total operating right-of-use assets were  and total operating lease liabilities (current) were During the  months ended the Company also entered into a -year lease for copiers which resulted in the recognition of property and equipment and total finance lease liabilities of As of total finance lease liabilities were of which and were classified as current and non-current, respectively.

 

Cash flow information related to the Company's right-of-use assets and related lease liabilities were as follows:

 

		Three months ended September 30,								Nine months ended September 30,
Lease cost		2020				2019				2020				2019
Cash paid for operating lease liabilities			30,820				39,555				78,904				118,664
Cash paid for finance lease liabilities			2,658				-				7,622				-
Right-of-use assets obtained in exchange for new operating lease liabilities (1)			-				-				663,009				-
Property and equipment obtained in exchange for new finance lease liabilities			-								43,242				-
(1) For the nine months ended September 30, 2019, the balance includes operating leases existing as of the adoption of ASC 842 on January 1, 2019.
Weighted-average remaining lease term - operating leases (years)			-				-				6.5				0.4
Weighted-average remaining lease term- finance leases (years)			-				-				4.3				-

 

 

The technology underlying the ® and ®, and an improvement to the controls for ® were developed by the Director of Clinical Affairs and assigned to Milestone Scientific. Milestone Scientific purchased this technology pursuant to an agreement dated The Director of Clinical Affairs will receive additional payments of of the total sales of products using certain of these technologies, and of the total sales of products using certain other of the technologies until the expiration of the last patent covering these technologies. If products produced by parties use any of these technologies (under license from us) then the Director of Clinical Affairs will receive the corresponding percentage of the consideration received by Milestone Scientific for such sale or license. See note  Other.