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Note 9 - Commitments and Contingencies

3 Months Ended

Mar. 31, 2025

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 April 2030 , one of which commenced on May 1, 2025 and therefore not included on the Consolidated Balance Sheet as of March 31, 2025. The future minimum lease payments for this lease are $3,058,000 over five years. The remaining operating leases are included in other long-term assets on the Company's March 31, 2025 and December 31, 2024 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 obligations on the Company's March 31, 2025 and December 31, 2024 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:

	March 31, 2025			December 31, 2024

Right-of-use asset, net and lease liabilities (in thousands)	$	2,508		$	2,747
Weighted average remaining lease term (years)		3.1			3.5
Weighted average discount rate		6.8	%		6.6	%

For the three months ended March 31, 2025 and 2024, cash paid for operating leases included in operating cash flows was $364,000 and $299,000, respectively.

Maturities of our operating lease liabilities as of March 31, 2025 is as follows:

	Operating Leases
	(In thousands)


2025		795
2026		1,042
2027		521
2028		440
2029		111
Total lease payments		2,909
Less imputed interest		(401	)
Total operating lease liabilities	$	2,508

Lease expense for the three months ended March 31, 2025 and 2024 consisted of the following:

	Three Months Ended
	March 31, 2025		March 31, 2024
(in thousands)
Cost of Revenue	$	209	$	176
General and Administrative		123		119
Development		32		4
Total	$	364	$	299

Retention Liability

On May 7, 2025, the Board of Directors approved a retention program for employees who, as of July 31, 2024, have been employees of the Company for more than five years. Under the program, we agreed to make a cash retention payment to each covered employee equal to the amount, if any, by which the employee’s 2024 base salary exceeds the value, measured as of close of trading on December 31, 2028, of the shares of restricted stock granted to such employee in 2024 and 2025 that are vested as of December 31, 2028. The maximum liability under this plan is approximately $14,325,000 and we expect to evaluate the liability and corresponding service cost on a quarterly basis. The program is further described in Part II, Item 5, of this Quarterly Report on Form 10-Q.

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.