Leases (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Classification of Operating ROU Assets and Lease Liabilities on the Balance Sheet

Lease contracts are evaluated at inception to determine whether they contain a lease and whether we obtain the right to control an identified asset. The following table summarizes the classification of operating ROU assets and lease liabilities on the consolidated balance sheets:

(in thousands)

Operating Leases	Classification	December 31, 2023		December 31, 2022
Leased Assets
Operating lease - right of use assets	Long term assets	$	413	$	506
Lease Liabilities
Operating lease liabilities - Current	Other current liabilities		234		418
Operating lease liabilities	Long term liabilities		357		160
		$	591	$	578

Lease Income and Expenses

The table below summarizes the lease income and expenses recorded in the consolidated statements of operations incurred year to date ended December 31, 2023, (in thousands):

Lease Cost	Classification	Twelve months ended, December 31, 2023		Twelve months ended, December 31, 2022
Operating lease cost (1)	Selling, general and administrative expenses	$	418		700
Short-term leases costs (2)	Selling, general and administrative expenses		29		60
Sublease income (3)	Selling, general and administrative expenses		-		(62	)
Net lease cost		$	447		698

⁽¹⁾ Includes variable lease costs which are immaterial.

⁽²⁾ Include leases maturing less than twelve months from the report date.

⁽³⁾ Sublease portfolio consists of 2 tenants, which sublease parts of our principal executive office located at 1332 Londontown Blvd, Suite 200, Sykesville, MD.

Future Minimum Lease Payments

We are obligated under certain noncancelable operating leases for office facilities and equipment. Future minimum lease payments under our noncancelable operating leases as of December 31, 2023 are as follows:

(in thousands)	Gross Future
	Minimum Lease
	Payments
2024	$	263
2025		150
2026		96
2027		90
2028		61
Thereafter		-
Total	$	660
Less: Interest		69
Present value of lease payments	$	591

Operating Lease Weighted Average Remaining Lease Term And Discount Rate

The below table summarizes the weighted-average remaining lease term, presented in years, and the weighted-average discount rate for our operating leases included in the consolidated balance sheet as of December 31, 2023:

Lease Term and Discount Rate	Twelve months ended December 31, 2023
Weighted-average remaining lease term (years)
Operating leases		3.38
Weighted-average discount rate
Operating leases		6.10	%

Classification of Lease Payments in the Statement of Cash Flows

There was right-of-use assets obtained in exchange for operating lease liabilities of $460 thousand during the year ended December 31, 2023. The table below sets out the classification of lease payments in the consolidated statements of cash flows:

(in thousands)

	Twelve months ended December 31,
Cash paid for amounts included in measurement of liabilities	2023		2022
Cash paid for amounts included in measurement of liabilities	$	453	$	1,233