Note 5 - Leases

6 Months Ended

Jun. 30, 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. 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 two to four 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 six months ended June 30, 2023 and 2022 (in thousands):

	Six Months Ended		Six Months Ended
Total component lease expense was as follows:	June 30, 2023		June 30, 2022
Operating leases	$	208	$	174
Supplemental cash flow information related to leases was as follows:
Cash paid for amounts included in the measurement of lease liabilities	$	213	$	176

The following table presents supplemental balance sheet information related to our operating leases as of June 30, 2023 and 2022 (dollars in thousands):

	June 30, 2023			June 30, 2022
Right-of-use lease assets	$	1,170		$	1,431
Current portion of operating lease liability	$	373		$	355
Operating lease liability, net of current portion		908			1,196
Total operating lease liabilities	$	1,281		$	1,551
Weighted average remaining lease term (years)		3.8			4.7
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 June 30, 2023 (in thousands):

Years Ending December 31,
2023, remainder of year	$	186
2024		376
2025		364
2026		276
2027		164
Total minimum lease payments		1,366
Less: amount representing interest		(85	)
Present value of lease liabilities	$	1,281