Note 9 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Legal Matters and Contingencies [Text Block]

9. COMMITMENTS AND CONTINGENCIES

Leases

We have noncancelable operating leases for offices and data centers expiring at various dates through March 2029. These operating leases are included in other long-term assets on the Company’s September 30, 2024 and December 31, 2023 Consolidated Balance Sheets and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are included in other current liabilities and long-term lease obligation on the Company’s September 30, 2024 and December 31, 2023 Consolidated Balance Sheets. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments.

Supplemental Information–Leases

Supplemental information related to our right-of-use assets and related lease liabilities is as follows:

	September 30, 2024			December 31, 2023
Right-of-use asset, net and lease liabilities (in thousands)	$	3,049		$	2,003
Weighted average remaining lease term (years)		3.4			2.8
Weighted average discount rate		6.4	%		3.4	%

For the nine-months ended September 30, 2024 and 2023, cash paid for operating leases included in operating cash flows was $1,005,000 and $994,000, respectively.

Maturities of our operating lease liabilities as of September 30, 2024 is as follows:

	Operating Leases
	(in thousands)
2024	$	362
2025		1,133
2026		1,045
2027		521
2028		440
Thereafter		111
Total lease liabilities	$	3,612

Lease expense for the three and nine months ended September 30, 2024 and 2023 consisted of the following:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Cost of Revenue	$	209	$	187	$	594	$	557
General and Administrative		121		116		359		339
Development		32		28		68		109
Total	$	362	$	331	$	1,021	$	1,005

Legal Matters

There are no pending or threatened legal proceedings. However, in the ordinary course of business, from time to time we may be involved in various pending or threatened legal actions. The litigation process is inherently uncertain, and it is possible that the resolution of such matters might have a material adverse effect upon our financial condition and/or results of operations. We accrue for unpaid legal fees for services performed to date.