Note 7 - Leases

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note 7 – Leases

The Company leases office space under non-cancelable operating leases with lease terms ranging from 1 to 7 years. These leases require monthly lease payments that may be subject to annual increases throughout the lease term.  Certain of these leases also include renewal options at the election of the Company to renew or extend the lease for an additional 2 to 5 years. These optional periods have not been considered in the determination of the right-of-use assets or lease liabilities associated with these leases as the Company did not consider it reasonably certain it would exercise the options. The Company performed evaluations of its contracts and determined each of its identified leases are operating leases.

In April 2021, the Company entered into a lease agreement for office space commencing on May 1, 2021, for a period of 5 years and 2 months, ending in July 2026, for a base annual rent of $192, with escalation clauses. The Company has the option to extend the lease for a period of 3 years. Additionally, the Company will be responsible for its share of taxes and common area maintenance expenses.

For the three months and six months ended June 30, 2021, the Company incurred $233 and $431, respectively, of lease expense on the condensed consolidated statements of operations in relation to these operating leases, of which $81 and $162 was variable rent expense associated with capitalized operating leases and not included within the measurement of the Company's operating right-of-use assets and lease liabilities. The variable rent expense consists primarily of the Company's proportionate share of operating expenses, property taxes, and insurance and is classified as lease expense due to the Company's election to not separate lease and non-lease components.  

As of June 30, 2021, the maturities of the Company’s lease liabilities were as follows:

2021 (excluding the six months ended June 30, 2021)	$	711
2022		1,445
2023		1,484
2024		1,524
2025		1,566
Thereafter		1,456
Total lease payments		8,186
Less: imputed interest		(1,600	)
Present value of lease liabilities	$	6,586

Included below is other information regarding leases for the periods noted below.

	Three Months Ended June 30, 2021			Six Months Ended June 30, 2021
Sublease income	$	193		$	386
Cash paid for operating leases	$	335		$	658
Weighted average remaining lease term (years) - operating leases		5.4			5.4
Weighted average discount rate – operating leases		8.25	%		8.25	%