LEASES - Note 7

3 Months Ended

Mar. 31, 2021

Notes To Financial Statements Abstract

LEASES - Note 7

7. LEASES

We lease our office space and certain equipment under finance and operating leases. Our leases have remaining lease terms of one to two years. Our office space lease contains an option to extend the lease for one period of five years. This extension period is not included in our right-of-uset asset or lease liability amounts. Our office lease agreement includes both lease and non-lease components, which are accounted for separately. Our finance leases contain options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless we are reasonably certain to exercise the purchase option.

The components of lease expense were as follows:

		Three Months Ended
		March 31,
(in thousands)		2021		2020
Operating lease expense	$	116	$	116
Finance lease expense:
Amortization of leased assets		8		6
Interest on lease liabilities		1		-
Total finance lease expense		9		6
Total lease expense	$	125	$	122

Supplemental cash flow information related to leases was as follows:

		Three Months Ended
		March 31,
		2021		2020
(in thousands)
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	166	$	161
Operating cash flows from finance leases		1		-
Financing cash flows from finance leases		8		6

Supplemental balance sheet information related to leases was as follows:

		March 31, 2021		December 31, 2020
(in thousands)
Operating leases
Operating lease right-of-use assets	$	851	$	946
Current portion of operating lease liability		680		676
Operating lease liability, net of current portion		624		774
Total operating lease liabilities	$	1,304	$	1,450
Finance leases
Property and equipment, at cost	$	112	$	112
Accumulated depreciation		(35)		(28)
Property and equipment, net	$	77	$	84
Current portion of finance lease obligations	$	28	$	31
Finance lease obligations, net of current portion		39		44
Total finance lease liabilities	$	67	$	75
Weighted Average Remaining Lease Term
Operating leases		2.0 years		2.3 years
Finance leases		1.7 years		2.0 years
Weighted Average Discount Rate
Operating leases		6.0%		6.0%
Finance leases		6.3%		6.3%

As of March 31, 2021, maturities of lease liabilities were as follows:

		Operating		Finance
(in thousands)		leases		leases
Years Ended December 31,
2021	$	510	$	24
2022		696		26
2023		175		21
2024		-		-
Thereafter		-		-
Total minimum lease payments		1,381		71
Less: amount representing interest		(77)		(4)
Present value of capital lease liabilities	$	1,304	$	67