NDAEB Annual Report 2019

National Dental Assisting Examining Board - Bureau national d'examen d'assistancedentaire Notes to Financial Statements December 31, 2019 12 8. Contractual Obligations The Organization has an agreement with an unrelated third party for examination services expiring December 2020. The Organization also pays annual operating costs for its office space. Future minimum payments total $200,755 and include the following payments over the next five year: 2020 $ 97,751 2021 $ 25,751 2022 $ 25,751 2023 $ 25,751 2024 $ 25,751 $ 200,755 9. Subsequent Event On January 30, 2020, the World Health Organization ('WHO') announced a global health emergency because of a new strain of coronavirus originating in Wuhan, China (the 'COVID- 19 outbreak') and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally. The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. As such, it is uncertain as to the full magnitude that the pandemic will have on the organization's financial condition, liquidity, and future results of operations. Management is actively monitoring the global situation on its financial condition, liquidity, operations and industry. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, the Organization is not able to estimate the effects of the COVID-19 outbreak on future results of operations, financial condition, or liquidity at this time. 10. Financial Instruments Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Organization is exposed to this risk for its long-term debt since it is subject to a variable interest rate.