Note 8 - Leases

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

8. Leases

In December 2019, we entered into an operating lease agreement for a new corporate office facility in Seattle, Washington. The term of the lease is 87 months, with a rent date starting on May 1, 2020 and the lease term ending on July 31, 2027. The lease has renewal option that can be exercised 9-15 months prior to the end of current term. The renewal option is for a 60-month period.

In November 2020, we renewed the lease for our office facility in the UK. The term of the lease is 120 months, with rent payments starting on November 30, 2020 and the lease term ending on November 8, 2030. The Company has an opportunity to break the lease at the five-year mark in November 2025. As it is reasonably certain that we will utilize this option, the accounting for this lease utilized November 2025 as the end date. The lease commencement date was November 9, 2020. 

Our leases have remaining terms of four to six years. Both of our leases contain renewal options. Because of changes in our business, we are not able to determine with reasonable certainty whether we will renew our Seattle or Trowbridge, UK lease. As a result, we have not considered renewal options when recording ROU assets, lease liabilities or lease expense.

		Twelve months ended
Total component lease expense was as follows (in thousands):		December 31, 2022		December 31, 2021
Operating leases	$	370	$	450
Supplemental cash flow information related to leases was as follows (in thousands):
Cash paid for amounts included in the measurement of lease liabilities	$	377	$	452

Supplemental balance sheet information related to leases was as follows (dollars in thousands):	December 31, 2022			December 31, 2021
Operating leases:
Right-of-use	$	1,297		$	1,598
Current portion of operating leases liability		362			357
Operating leases liability, net of current portion		1,051			1,363
Total operating leases liabilities	$	1,413		$	1,720
Weighted average remaining lease term (in years)		4.25			5.18
Weighted average discount rate		8.5	%		8.5	%

Future operating lease commitments are as follows (in thousands):  

As of December 31, 2022, maturities of lease liabilities were as follows:		Operating leases
Years Ended December 31,
2023	$	364
2024		371
2025		360
2026		276
2027		164
Total minimum lease payments	$	1,535
Less: amount representing imputed interest		(122	)
Present value of lease liabilities	$	1,413