Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.23.2
Leases
3 Months Ended
Mar. 31, 2023
Leases  
Leases

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 March 31, 2023 and December 31, 2022

 

The table below presents the lease related assets and liabilities recorded on the Company’s Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022:

 

        March 31,     December 31,  
Balance Sheet Line   Classification on the Balance Sheet   2023     2022  
        (in thousands)  
Assets                
Operating lease assets   Operating lease right of use assets   $ 96     $ 113  
Total lease assets   Total lease assets   $ 96     $ 113  
                     
Liabilities                    
Current liabilities:                    
Operating lease liabilities   Current operating lease liabilities   $ 63     $ 67  
Noncurrent liabilities:                    
Operating lease liabilities   Long-term operating lease liabilities   $ 32     $ 46  
Total lease liabilities   Total lease liabilities   $ 96     $ 113  

 

Lease cost for the three months ended March 31, 2023 and 2022

 

The table below presents the lease related costs recorded on the Company’s Consolidated Statements of Operations for the three months ended March 31, 2023 and 2022:

 

                 
        Three Months Ended March 31,  
Lease cost   Classification   2023     2022  
        (in thousands)  
Operating lease cost   General and administrative expenses   $ 5     $ 6  
Total lease cost   Total lease cost   $ 5     $ 6  

 

Other Information

 

The table below presents supplemental cash flow information related to leases for the three months ended March 31, 2023 and 2022:

 

             
    Three Months Ended
March 31,
 
    2023     2022  
    (in thousands)  
Cash paid for amounts included in the measurement of lease liabilities:                
Operating cash flows for operating leases   $ 5     $ 6  
Supplemental non-cash amounts of lease liabilities arising from obtaining right-of-use assets/(decrease) of lease liability due to cancellation of leases   $     $  

 

 

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 March 31, 2023 and December 31, 2022:

 

   

March 31,

2023

   

December 31,

2022

 
Weighted average remaining lease term - operating leases     .25 years       .50 years  
Weighted average discount rate - operating leases     12.00 %     12.00 %

 

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