Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

LEASES

We have operating lease arrangements for corporate offices, cellular towers, storage units and small building space. The building space is used to house infrastructure, such as transmitters, antennae and other various equipment for the Company’s wireless paging services. For leases with a term of 12 months or less, renewal terms are generally of an evergreen nature (either month-to-month or year-to-year). For leases with a term greater than 12 months, renewal terms are generally explicit and provide for one to five optional renewals consistent with the initial term. Many of our leases, with the exception of those for our corporate offices, include options to terminate the lease within one year. Variable lease payments, residual value guarantees or purchase options are not generally present in these leases.

In May 2022, we extended twenty-three site leases on a Master License Agreement which included a term of 10 years with an option to terminate within 45 days of notification of termination. At that time, we recorded a $2.9 million right-of-use asset and a corresponding operating lease liability for these leases.

In December 2022, we modified an office lease to reduce the leased space and optimize costs, which resulted in a reduction of $1.8 million in right-of-use assets and corresponding operating lease liabilities.

Lease costs are included in technology operations and general and administrative expenses in the Condensed Consolidated Statements of Operations. The following table presents lease costs disaggregated by type:

	For the Three Months Ended March 31,
(Dollars in thousands)	2023		2022
Operating lease cost	$	1,178	$	1,482
Short-term lease cost	2,280		2,633
Total lease cost	$	3,458	$	4,115

The following table presents supplemental cash flow information:

	For the Three Months Ended March 31,
(Dollars in thousands)	2023		2022
Cash paid for amounts included in the measurement of lease liabilities - operating leases	$	1,368	$	1,535

The following table presents the weighted average remaining lease term and discount rate:

	March 31,
(Dollars in thousands)	2023	2022
Weighted average remaining lease term - operating leases (in years)	4.70	4.60
Weighted average discount rate - operating leases	4.79%	4.42%

Maturities of lease liabilities as of March 31, 2023, were as follows:

For the Year Ended December 31,	(Dollars in thousands)
2023 (remaining nine months)	$	3,874
2024	4,031
2025	3,006
2026	2,304
2027	1,118
Thereafter	2,475
Total future lease payments	16,808
Imputed interest	(1,780)
Total	$	15,028