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Note 10 - Leases

12 Months Ended

Dec. 31, 2024

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 3 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, 2024 and 2023 (in thousands):

		*December 31,*
	*Balance sheet line item classification*	*2024*		*2023*
Assets
Operating lease assets	Right-of-use assets and other noncurrent assets	$	149	$	—
Finance lease assets	Property and equipment, net of accumulated depreciation		349		43
Total lease assets		$	498	$	43
Liabilities
Current
Operating lease obligation	Current portion of finance and operating lease obligations	$	70	$	120
Finance lease obligation	Current portion of finance and operating lease obligations		314		44
Noncurrent
Operating lease obligation	Long-term portion of operating lease obligations		101		21
Total lease liabilities		$	485	$	185

The following table summarizes the components of lease expense for the years ended December 31, 2024 and 2023 (in thousands):

		*Year Ended December 31,*
Lease Cost	*Classification*	*2024*		*2023*
Operating lease cost	Cost of sales	$	—	$	—
Operating lease cost	Selling, general and administrative expenses		192		188
Finance lease cost:
Amortization of leased assets	Depreciation expense		18		21
Interest on lease liabilities	Interest expense		9		5
Net lease cost		$	219	$	214

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, 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 $169 thousand and $188 thousand for the years ended December 31, 2024 and 2023, respectively.

The following schedule presents the future minimum lease payments for our operating and finance lease obligations at December 31, 2024 (in thousands):

	*Operating Leases*			*Finance Leases*			*Total*
2025	$	89		$	336		$	425
2026		66			—			66
2027		40			—			40
Total lease payments		195			336			531
Less: Interest		(24	)		(22	)		(46	)
Present value of lease liabilities	$	171		$	314		$	485

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

	*December 31,*
Lease Term and Discount Rate	*2024*			*2023*
Weighted-average remaining lease term (years)
Operating leases		2.9			1.2
Finance leases		1.0			0.1
Weighted-average discount rate
Operating leases		9.5	%		5.8	%
Finance leases		8.5	%		10.7	%

The following table summarizes the supplemental cash flow information related to leases as of December 31, 2024 and 2023 (in thousands):

Other information	*December 31, 2024*		*December 31, 2023*
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	187	$	181
Financing cash flows from finance leases		76		20
Interest paid		9		5
Noncash activities from right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	167	$	—
Financing leases		347		—