Note 8 - Leases

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Leases

Note 8 – 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.

The sublease agreement to sublease half of the 31,000 square feet of office in St. Petersburg, Florida that commenced on February 1, 2017, expired on June 30, 2022. The lease was re-measured at that time and as a result, the Company recorded an impairment loss of $373 in general and administrative expenses. The lease was re-measured again in 2023 and, as a result, the Company recorded an impairment loss of $488 in general and administrative expenses. As of September 30, 2024, a subtenant still has not been found and one is not anticipated to be found before the lease expires.  The Company incurred an impairment loss of $284 in general and administrative expenses.  

For the three months ended September 30, 2024 and September 30, 2023, the Company incurred $84 and $171, respectively, of lease expense on the condensed consolidated statements of operations in relation to these operating leases, of which $53 and $49 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 it is classified as lease expense due to the Company's election to not separate lease and non-lease components.

In September 2024, the Company amended one of its lease agreements to extend the lease for 1,533 square feet of office space in Boca Raton, Florida for an additional 12 calendar months, commencing on November 1, 2024 and expires on October 31, 2025. 

The lease agreement for 18,700 square feet of office space in Farmingdale, New York used by NutraScience Labs as its corporate office commenced on June 2, 2017 and was surrendered to the landlord, as part of the abandonment of operations, on May 12, 2023. A loss of $20 was recorded in general and administrative expenses. 

The lease agreement for 13,500 square feet of office space in Hauppauge, New York used by NutraScience Labs as its secondary office space and warehouse commenced on May 1, 2021 and was forfeited to the landlord, as part of the abandonment of operations, during the quarter ended March 31, 2024. A loss of $454 was recorded in general and administrative expenses.

As of September 30, 2024, the maturities of the Company’s lease liabilities were as follows:  

2024 (excluding the nine months ended September 30, 2024)	$	441
2025		1,191
2026		952
2027		306
Total lease payments		2,890
Less: imputed interest		(247	)
Present value of lease liabilities	$	2,643

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

		Three Months Ended September 30, 2024			Nine Months Ended September 30, 2024
Sublease income	$	167		$	501
Cash paid for operating leases	$	149		$	730
Weighted average remaining lease term (years) - operating leases		2.0			2.0
Weighted average discount rate – operating leases		8.25	%		8.25	%