Quarterly report pursuant to Section 13 or 15(d)


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)  
Operating lease assets   Operating lease right of use assets   $          78     $          113  
Total lease assets   Total lease assets   $ 78     $ 113  
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:


        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.