Note 12 - Operating Leases

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Lessor, Operating Leases [Text Block]

NOTE 12 – OPERATING LEASES

The Company’s corporate offices are located at 601 Montgomery Street, Suite 1112, San Francisco, California, where it leases approximately 900 square feet for $4,425 per month with a lease expiration date in November 2024. The Company subleased its existing corporate offices located at Two Embarcadero Center, Suite 410, San Francisco, California, where it leases approximately 3,253 square feet for $21,370 per month with a lease expiration date in August 2023. The monthly lease expense is offset by sublease income of $15,723. The sublease term is consistent with the existing lease term. The Company owns and operates a stand-alone Gamma Knife facility in Lima, Peru where it leases approximately 1,600 square feet for approximately $7,800 per month with a lease expiration date in January 2024.

Future minimum payments under non-cancelable operating leases, excluding expected sublease income, having initial terms of more than one year consisted of the following:

Year ending December 31,
2022	$	406,000
2023		302,000
2024		58,000
	$	766,000

Payments for repair and maintenance agreements incorporated in operating lease agreements are not included in the future minimum operating lease payments shown above.

Net rent expense was $377,000 and $404,000 for the years ended December 31, 2021 and 2020, respectively, and includes the above operating leases as well as month-to-month rental and certain executory costs. The sublease of the Company's existing office space through the remainder of its lease term at a rate lower than its lease rate resulted in an impairment loss of $77,000. The impairment loss will be amortized over the remaining lease term as an adjustment to total lease expense. As of December 31, 2021, the Company recognized $3,000 of the sublease impairment loss.