Leases

3 Months Ended

Mar. 31, 2023

LEASES

As of March 31, 2023, the Company leased-in one anchor handling towing supply vessel (“AHTS”), one FSV, and certain facilities and other equipment. The leases typically contain purchase and renewal options or rights of first refusal with respect to the sale or lease of the equipment. As of March 31, 2023, the remaining lease terms of the vessels had a duration ranging from 18 to 48 months. The lease terms of certain facilities and other equipment had a duration ranging from three to 285 months.

As of March 31, 2023, future minimum payments for leases for the remainder of 2023 and the years ended December 31, noted below, were as follows (in thousands):


	Operating Leases			Finance Leases
Remainder of 2023	$	1,597		$	612
2024		1,721			946
2025		645			959
2026		459			953
2027		400			4,659
Years subsequent to 2027		3,214			—
		8,036			8,129
Interest component		(1,798	)		(922	)
		6,238			7,207
Current portion of long-term lease liabilities		1,764			563
Long-term lease liabilities	$	4,474		$	6,644

For the three months ended March 31, 2023 and 2022 the components of lease expense were as follows (in thousands):


	Three Months Ended March 31,
	2023		2022
Operating lease cost	$	546	$	908
Finance lease cost:
Amortization of finance lease assets (1)		160		59
Interest on finance lease liabilities (2)		72		25
Short-term lease costs		174		152
	$	952	$	1,144

(1)

Included in amortization costs in the consolidated statements of income (loss).

(2)

Included in interest expense in the consolidated statements of income (loss).

For the three months ended March 31, 2023 supplemental cash flow information related to leases was as follows (in thousands):


	2023
Operating cash outflows from operating leases	$	641
Financing cash outflows from finance leases		114
Right-of-use assets obtained for operating lease liabilities		196
Right-of-use assets obtained for finance lease liabilities		—

For the three months ended March 31, 2023 other information related to leases was as follows:


	2023
Weighted average remaining lease term, in years - operating leases		9.8
Weighted average remaining lease term, in years - finance leases		4.0
Weighted average discount rate - operating leases		6.8	%
Weighted average discount rate - finance leases		4.0	%