|3 Months Ended|
Mar. 31, 2022
|Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]|
Note 5. Other Assets
Other assets as of March 31, 2022 and December 31, 2021 are summarized as follows:
Schedule of Other Assets
In June 2020, the Company entered into a Share Purchase Agreement (“Agreement”) and amendments to the Agreement through April 28, 2022, collectively, the Agreements, to purchase either the stock or certain assets of a manufacturing facility for $M in cash, plus additional consideration of shares of common stock with a fair market value of $ and stock options with an exercise price of $ . At March 31, 2022, the fair market value of the common stock of $ and the vested options of $ is included in Other Assets, The Agreements provided the Company various periods for due diligence and post due diligence, requirements for escrow payments of $ and a closing date is expected by June 30, 2022 (“Closing Date”).
As of March 31, 2022, the Company has paid $ in escrow payments, which is recorded in Other Assets. The escrow payments may be forfeited upon: the occurrence of any damage to the assets caused by the actions of the Company; the occurrence of any debt on the books of the seller as a result of an expense initiated by the Company; any failure by the Company to fund the Operating Costs; and any material breach by the Company of its obligations under this Agreement that causes any financial damage to either the seller or the assets. On the Closing Date, the Escrow balances will be applied to the final payment due the Sellers.
Through the Closing Date, the Agreements provide the Company with the exclusive use of the facility in exchange for payment of the facility’s operating costs. The monthly fee (“Operating Costs”), which primarily covers the facility’s operating costs, is mainly comprised of the seller’s workforce costs, materials and other recurring monthly operating cost.
SHARPS TECHNOLOGY, INC.
NOTES TO THE CONDENSED FIN ANCIAL STATEMENTS
FOR THE THREE MONTHS ENDEDMARCH 31, 2022 AND 2021
Note 5. Other Assets (continued)
The payment of the Operating Costs does not provide the Company with rights associated with a rent agreement. As a result, the payment of operating costs was concluded not to be in substance a lease agreement, and therefore no right-of-use asset or lease liability were recognized. During the three months ended March 31, 2022 and 2021, the Company had remitted $ and $ , respectively for the aforementioned Operating Costs. These costs were included in research and development expense in the statement of operations and comprehensive loss as the activities at the facility in 2022 and 2021 were related to design and testing of the Company’s products.
No definition available.
The entire disclosure for other assets. This disclosure includes other current assets and other noncurrent assets.
No definition available.