Note 5 - Leases

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

5. 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. 

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. There was no material impact to our statement of operations or statement of cash flows as a result of entering into this lease. 

Our leases have remaining terms of four to five 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 leases. As a result, we have not considered renewal options when recording ROU assets, lease liabilities or lease expense.

The following tables present the components of our lease expense and supplemental cash flow information related to our leases for the three months ended March 31, 2023 and 2022 (in thousands):

	Three Months Ended		Three Months Ended
Total component lease expense was as follows:	March 31, 2023		March 31, 2022
Operating leases	$	101	$	75
Supplemental cash flow information related to leases was as follows:
Cash paid for amounts included in the measurement of lease liabilities	$	110	$	77

The following table presents supplemental balance sheet information related to our operating leases as of March 31, 2023 and 2022 (dollars in thousands):

	March 31, 2023			March 31, 2022
Right-of-use lease assets	$	1,234		$	1,522
Current portion of operating lease liability	$	367		$	358
Operating lease liability, net of current portion		981			1,286
Total operating lease liabilities	$	1,348		$	1,644
Weighted-average remaining lease term (years)		4.0			4.9
Weighted-average discount rate		8.5	%		8.5	%

The following table presents the amounts we are obligated to pay, by maturity, under our operating leases liabilities as of March 31, 2023 (in thousands):

Years Ending December 31,
2023, remainder of year	$	276
2024		373
2025		362
2026		276
2027		164
Total minimum lease payments		1,451
Less: amount representing interest		(103	)
Present value of lease liabilities	$	1,348