The Company adopted Accounting Standards Update (“ASU”) - Leases (Topic ), as of using the modified retrospective approach, which allows comparative periods to be restated. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed the Company to carry forward the historical lease classification, reassess whether any expired or existing contracts are or contain leases and to reassess initial direct costs for any existing leases. The Company also elected the hindsight expedient to determine the lease terms for existing leases. The election of the hindsight expedient did have a significant impact on the calculation of the expected lease term.

 

The adoption of the new standard resulted in the recognition of operating lease right of use assets and operating lease obligations of and respectively on The difference between the operating lease right of use asset and operating lease obligation related to accrued and prepaid rent of which was reclassified to the operating lease right of use asset. The standard did materially impact consolidated net loss and had impact on cash flows.