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Note 10 - Leases

12 Months Ended

Dec. 31, 2023

10. LEASES

Our leases primarily consist of operating leases for certain facilities and office spaces, and financing leases for equipment. Our leases have remaining terms of 1 to 2 years and may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease assets also include any upfront lease payments made and exclude lease incentives and initial direct cost incurred. Lease expense for operating leases is recognized on a straight-line basis over the lease term.

The following table summarizes our operating and finance lease assets and liabilities as of December 31, 2023 and 2022 (in thousands):

		*December 31,*
	*Balance sheet line item classification*	*2023*		*2022*
Assets
Operating lease assets	Right-of-use assets and other noncurrent assets	$	—	$	—
Finance lease assets	Property and equipment, net of accumulated depreciation		43		64
Total lease assets		$	43	$	64
Liabilities
Current
Operating	Current portion of operating lease obligations	$	120	$	114
Finance	Current portion of finance lease obligation		44		19
Noncurrent
Operating	Long-term portion of operating lease obligation		21		141
Finance	Long-term portion of finance lease obligations		—		42
Total lease liabilities		$	185	$	316

The following table summarizes the components of lease expense for the year ended December 31, 2023 and 2022 (in thousands):

		*Year Ended December 31,*
Lease Cost	*Classification*	*2023*		*2022*
Operating lease cost	Cost of sales	$	—	$	142
Operating lease cost	Selling, general and administrative expenses		188		215
Finance lease cost:
Amortization of leased assets	Depreciation expense		21		21
Interest on lease liabilities	Interest expense		5		9
Net lease cost		$	214	$	387

Other

The Company leases certain buildings and facilities, including office space in Houston, Texas and Monterrey, Mexico. The Company also leases marine bunkering and staging sites in Galveston, Texas and has various sites for commercial trailers in Herber, California; Hudson, Colorado; along with certain equipment on a short term basis. Leases which are less than twelve months and have no cancellation penalties are not recorded on the Consolidated Balance Sheets.

Office rent expense totaled approximately $188 thousand and $216 thousand for the years ended December 31, 2023 and 2022, respectively.

The following schedule presents the future minimum lease payments for our operating and finance lease obligations at December 31, 2023 (in thousands):

	*Operating Leases*			*Finance Leases*		*Total*
2024		125			44	$	169
2025		21			—		21
Total lease payments		146			44		190
Less: Interest		(5	)		—		(5	)
Present value of lease liabilities	$	141		$	44	$	185

Lease term and discount rates for our operating and finance lease obligations are as follows:

	*December 31,*
Lease Term and Discount Rate	*2023*			*2022*
Weighted-average remaining lease term (years)
Operating leases		1.2			2.2
Finance leases		0.1			1.1
Weighted-average discount rate
Operating leases		5.8	%		5.8	%
Finance leases		10.7	%		10.7	%

The following table summarizes the supplemental cash flow information related to leases as of December 31, 2023 and 2022(in thousands):

Other information	*December 31, 2023*		*December 31, 2022*
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	181	$	274
Financing cash flows from finance leases		20		19
Interest paid	$	5	$	9