Leases

6 Months Ended

Jun. 30, 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 23 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 June 30,				For the Six Months Ended June 30,
(Dollars in thousands)	2023		2022		2023		2022
Operating lease cost	$	1,171	$	1,379	$	2,351	$	2,861
Short-term lease cost	2,262		2,448		4,539		5,081
Total lease cost	$	3,433	$	3,827	$	6,890	$	7,942

The following table presents supplemental cash flow information:

	For the Six Months Ended June 30,
(Dollars in thousands)	2023		2022
Cash paid for amounts included in the measurement of lease liabilities - operating leases	$	2,661	$	2,945

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

	June 30,
(Dollars in thousands)	2023	2022
Weighted average remaining lease term - operating leases (in years)	4.70	4.80
Weighted average discount rate - operating leases	4.86%	4.37%

Maturities of lease liabilities as of June 30, 2023, were as follows:

For the Year Ended December 31,	(Dollars in thousands)
2023 (remaining six months)	$	2,473
2024	4,151
2025	3,158
2026	2,420
2027	1,206
Thereafter	2,505
Total future lease payments	15,913
Imputed interest	(1,700)
Total	$	14,213