Note 12 - Leases

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

12.

Leases

We lease datacenters, corporate offices and fiber-optic cables under operating leases. The Company does

not

have any leases classified as finance leases.

Our leases have remaining lease terms of

1

year to

20

 years, some of which

may

include options to extend the leases for up to

5

years, and some of which

may

include options to terminate the leases within

1

year.

The components of lease expense were as follows (Dollar amounts in thousands of U.S. dollars): 

	For the three months ended		For the three months ended
	March 31, 2020		March 31, 2019
Operating Lease Cost (leases with a total term greater than 12 months)	$	547	$	1,071
Short-term Lease Cost (leases with a total term of 12 months or less)		244		124
Variable Lease Cost		128		171
Total Lease Cost	$	919	$	1,366

Lease Cost is presented in general and administrative expenses and network expenses within our consolidated statements of operations and comprehensive income.

Information related to leases was as follows (Dollar amounts in thousands of U.S. dollars):

	For the three months ended		For the three months ended
Supplemental cashflow information:	March 31, 2020		March 31, 2019
Operating Lease - Operating Cash Flows (Fixed Payments)	$	559	$	1,051
Operating Lease - Operating Cash Flows (Liability Reduction)	$	438	$	948
New ROU Assets - Operating Leases	$	875	$	4,427

Supplemental balance sheet information related to leases:	March 31, 2020			March 31, 2019
Weighted Average Discount Rate		4.03	%		5.24	%
Weighted Average Remaining Lease Term	8.60 yrs			8.55 yrs

Maturity of lease liability as of

March 31, 2020

(Dollar amounts in thousands of U.S. dollars):

	March 31, 2020
Remaining of 2020	$	1,384
2021		1,741
2022		1,662
2023		1,624
2024		1,353
Thereafter		4,954
Total future lease payments		12,718
Less imputed interest		1,937
Total	$	10,781

Operating lease payments include payments under the non-cancellable term and approximately

$0.6

 million related to options to extend lease terms that are reasonably certain of being exercised.

As of

March 31, 2020

,

we have entered into lease agreements for total payments of

$0.1

 million that have

not

yet commenced, and therefore are

not

included in the lease liability.

In

March 2020,

the Company modified a corporate office lease to defer it’s

April 2020

rent payment, to be paid later in

four

equal installments from

September

to

December 2020.

The modification resulted in an increase to the right of use operating lease asset and right of use operating lease liability of

$0.3

million and

$0.6

 million, respectively, which also included the foreign exchange re-measurement of the right of use asset at the date of modification. Foreign exchange revaluation on both the right of use asset and liability is presented in general and administrative expenses within our consolidated statements of operations and comprehensive income.

The Company has elected to use the single exchange rate approach when accounting for lease modifications. Under the single exchange rate approach, the entire right of use asset is revalued at the date of modification in the Company’s functional currency provided the re-measurement is

not

considered a separate contract or if the re-measurement is related to change the lease term or assessment of a lessee option to purchase the underlying asset being exercised.