Quarterly report pursuant to Section 13 or 15(d)

Leases

Leases

9 Months Ended

Sep. 30, 2023

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 September 30, 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 September 30, 2023 and December 31, 2022:

Balance Sheet Line	Classification on the Balance Sheet	September 30, 2023		December 31, 2022
		(in thousands)
Assets
Operating lease assets	Operating lease right of use assets	$	78	$	113
Total lease assets	Total lease assets	$	78	$	113

Liabilities
Current liabilities:
Operating lease liabilities	Current operating lease liabilities	$	59	$	67
Noncurrent liabilities:
Operating lease liabilities	Long-term operating lease liabilities	$	18	$	46
Total lease liabilities	Total lease liabilities	$	78	$	113

Lease cost for the nine months ended September 30, 2023 and 2022

The table below presents the lease related costs recorded on the Company’s Consolidated Statements of Operations for the nine months ended September 30, 2023 and 2022:

Schedule of Operating Lease Cost


		Nine Months Ended September 30,
Lease cost	Classification	2023		2022
		(in thousands)
Operating lease cost	General and administrative expenses	$	-	$	20
Total lease cost	Total lease cost	$	-	$	20

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 September 30, 2023 and December 31, 2022:

	September 30, 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.