Note 12 - Leases

9 Months Ended

Sep. 30, 2021

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 September 30,				For the Nine Months Ended September 30,
	2021		2020		2021		2020
Operating Lease Cost (leases with a total term greater than 12 months)		$674		$569		$1,812		$1,644
Short-term Lease Cost (leases with a total term of 12 months or less)		21		76		103		449
Variable Lease Cost		179		164		421		437
Total Lease Cost		$874		$809		$2,336		$2,530

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 September 30,				For the Nine Months Ended September 30,
Supplemental cashflow information:	2021		2020		2021		2020
Operating Lease - Operating Cash Flows (Fixed Payments)	$	2,929	$	571	$	4,040	$	1,560
Operating Lease - Operating Cash Flows (Liability Reduction)	$	590	$	475	$	1,538	$	1,273
New ROU Assets - Operating Leases	$	4,188	$	1,030	$	6,751	$	1,941

Supplemental balance sheet information related to leases:	September 30, 2021			December 31, 2020
Weighted Average Discount Rate		3.18	%		3.87	%
Weighted Average Remaining Lease Term	8.29 yrs			8.24 yrs

Maturity of lease liability as of  September 30, 2021 (Dollar amounts in thousands of U.S. dollars):

	September 30, 2021
Remaining of 2021	$	725
2022		2,965
2023		3,001
2024		2,176
2025		1,470
Thereafter		5,012
Total future lease payments		15,349
Less imputed interest		1,658
Total	$	13,691

Operating lease payments include payments under the non-cancellable term, without any additional amounts related to options to extend lease terms that are reasonably certain of being exercised.

As of September 30, 2021, we have not entered into lease agreements that have not yet commenced. 

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.