Quarterly report pursuant to Section 13 or 15(d)

Leases

Leases

6 Months Ended

Jun. 30, 2021

Note 14 - 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 non-lease 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 June 30, 2021 and December 31, 2020

The table below presents the lease related assets and liabilities recorded on the Company’s Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020:

Classification on the Balance Sheet	June 30, 2021		December 31, 2020
	(in thousands)
Operating lease right of use assets	$	32	$	45
Total lease assets	$	32	$	45

Current operating lease liabilities	$	26	$	25

Long-term operating lease liabilities	$	7	$	20
Total lease liabilities	$	33	$	45

Lease cost for the three and six months ended June 30, 2021 and 2020

The table below presents the lease related costs recorded on the Company’s Consolidated Statements of Operations for the three and six months ended June 30, 2021 and 2020:

	Three Months Ended June 30,				Six Months Ended June 30,
Classification	2021		2020		2021		2020
	(in thousands)				(in thousands)
General and administrative expenses	$	7	$	3	$	13	$	10
Total lease cost	$	7	$	3	$	13	$	10

Other Information

The table below presents supplemental cash flow information related to leases for the six months ended June 30, 2021 and 2020:

	Six Months Ended June 30,
	2021		2020
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	13	$	11
Supplemental non-cash amounts of lease liabilities arising from obtaining right-of-use assets/(decrease) of lease liability due to cancellation of leases		—		(2	)

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 the Company’s operating leases as of June 30, 2021 and December 31, 2020:

	June 30, 2021			December 31, 2020
Weighted average remaining lease term - operating leases		1.25 years			1.75 years
Weighted average discount rate - operating leases		12.00	%		12.00	%

There are no lease arrangements where the Company is the lessor.