Annual report pursuant to Section 13 and 15(d)

Leases

Leases

12 Months Ended

Dec. 31, 2019

Note 16 - Leases

Right-of-Use Assets and Leases Obligations

We lease office space and office equipment under non-cancelable operating leases, with terms typically ranging from one to three years, subject to certain renewal options as applicable. We consider those renewal or termination options that are reasonably certain to be exercised in the determination of the lease term and initial measurement of lease liabilities and right-of-use assets. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet.

We determine whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When available, we use the rate implicit in the lease to discount lease payments to present value; however, most of our leases do not provide a readily determinable implicit rate. Therefore, we must discount lease payments based on an estimate of its incremental borrowing rate.

We do not separate lease and nonlease components of contracts. There are no material residual value guarantees associated with any of our leases. There are no significant restrictions or covenants included in our lease agreements other than those that are customary in such arrangements.

Lease Position as of December 31, 2019

The table below presents the lease related assets and liabilities recorded on the Consolidated Balance Sheet as of December 31, 2019:

(in thousands)	Classification on the Balance Sheet	December 31, 2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	122
	Total lease assets	$	122

Liabilities
Current liabilities:
Operating lease liabilities	Current operating lease liabilities	$	86
Noncurrent liabilities:
Operating lease liabilities	Long-term operating lease liabilities	$	27
	Total lease liabilities	$	113

Lease cost for the year ended December 31, 2019

The table below presents the lease related costs recorded on the Consolidated Statement of Operation and Comprehensive Income (Loss) for the year ended December 31, 2019:

(in thousands)		Year Ended December 31, 2019
Lease cost	Classification
Operating lease cost	General and administrative expenses	$	60
	Total lease cost	$	60

Other Information

The table below presents supplemental cash flow information related to leases for the year ended December 31, 2019:

(in thousands)	Year Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	61
Supplemental non-cash amounts of lease liabilities arising from obtaining right-of-use assets	$	176

As a result of the sale of Legacy UK, the leases classified as right-of-use assets and as lease liabilities in the amount of $2.2 million, were written off to discontinued operations. See Note 4 "Discontinued Operations".

Currently, we are in the process of early-cancellation of the Causeway Bay, Hong Kong lease. The early cancellation may include additional fees.

Lease Terms and Discount Rates

The table below presents certain information related to the weighted average remaining lease terms and weighted average discount rates for our operating leases as of December 31, 2019:

	Year Ended December 31, 2019
Weighted average remaining lease term - operating leases		1.67 years
Weighted average discount rate - operating leases		12.00	%

Undiscounted Cash Flows

The table below reconciles the fixed component of the undiscounted cash flows for each of the first five years and the total remaining years to the operating lease liabilities recorded on the Consolidated Balance Sheet as of December 31, 2019:

Amounts due within twelve months of December 31,	Operating Leases
	(in thousands)
2020	$	96
2021		27
2022		9
Total minimum lease payments		132
Less: effect of discounting		(19	)
Present value of future minimum lease payments		113
Less: current obligations under leases		(86	)
Long-term lease obligations	$	27

There are no lease arrangements where we are the lessor.