Leases

6 Months Ended

Jun. 30, 2024

Leases

Leases

Leases primarily consist of office space, facilities, and equipment.  A lease is deemed to exist when the Company has the right to control the use of identified property, plant or equipment, as conveyed through a contract, for a certain period of time and consideration paid. The right to control is deemed to occur when the Company has the right to obtain substantially all of the economic benefits of the identified assets and the right to direct the use of such assets. The Company recognizes right-of-use (“ROU”) assets and a corresponding lease liability on the lease commencement date (the date in which the asset is available for use). Lease liabilities are recognized in “Other current payables” and “Other non-current payables.”

The Company uses its estimated incremental borrowing rate in determining the present values of lease payments. The incremental borrowing rate is the rate of interest the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments for a term similar to the lease term in a similar economic environment as the lease. Lease liabilities are measured at the present value of lease payments to be made during the lease term, which is measured based on the contract term and renewal options. Options to extend the lease term or terminate it early are considered when it is reasonably certain the options will be exercised. 

The following is a summary of the balance sheet components of leases:

	June 30,		December 31,
		2024		2023
Supplemental balance sheet information
ROU assets, net - related parties	$	415	$	474
ROU assets, net - third parties		622		34
Total ROU assets, net	$	1,037	$	508
Operating lease liabilities - related parties	$	383	$	474
Operating lease liabilities - third parties		620		36
Total operating lease liabilities	$	1,003	$	510

Future minimum lease payments at June 30, 2024 were as follows:

		Operating Leases
2024	$	275
2025		455
2026		265
2027		95
2028		3
Thereafter		-
Total minimum lease payments		1,093
Imputed interest		(90	)
Total operating lease liabilities	$	1,003

As of June 30, 2024, the Company has one lease with a related party that has not yet commenced. The lease is for a facility in Gavião Peixoto in the state of São Paulo, Brazil. The lease is expected to commence this year. The Company will also have additional leases commence for equipment from third parties during 2024.