Quarterly report pursuant to Section 13 or 15(d)

Note 13 - Leases

v3.21.2
Note 13 - Leases
6 Months Ended
Jun. 30, 2021
Notes to Financial Statements  
Lessee, Operating Leases [Text Block]

13.

Leases

 

The Company’s operating leases are primarily for office space, service facility centers and equipment under operating lease arrangements that expire at various dates over the next ten years. The Company’s leases do not contain any restrictive covenants. The Company’s office leases generally contain renewal options for periods ranging from one to five years. Because the Company is not reasonably certain to exercise these renewal options, the options are not considered in determining the lease term, and payments associated with the option years are excluded from lease payments. The Company’s office leases do not contain any material residual value guarantees. The Company’s equipment leases generally do not contain renewal options.

 

Payments due under the Company’s operating leases include fixed payments as well as variable payments. For the Company’s office leases, variable payments include amounts for the Company’s proportionate share of operating expenses, utilities, property taxes, insurance, common area maintenance and other facility-related expenses. For the Company’s equipment leases, variable payments may consist of sales taxes, property taxes and other fees.

 

The components of lease costs for the three and six months ended June 30, 2021 and 2020 are as follows (in thousands):

 

   

Three Months Ended

   

Six Months Ended

 
   

June 30,

   

June 30,

 
   

2021

   

2020

   

2021

   

2020

 

Operating lease cost

  $ 348     $ 404     $ 696     $ 828  

Variable lease cost

    58       77       115       189  

Total lease cost

  $ 406     $ 481     $ 811     $ 1,017  

 

Supplemental cash flow information and non-cash activity related to the Company’s leases are as follows (in thousands):

 

   

Six Months Ended

 
   

June 30,

 
   

2021

   

2020

 

Cash paid for amounts included in the measurement of lease liabilities and right of use assets:

               

Operating cash flow from operating leases

  $ 720     $ 789  
                 

Right of use assets obtained in exchange for lease obligations:

               

Operating leases

  $ 288     $ 118  

 

Weighted average remaining lease terms and discount rates for the Company’s operating leases are as follows:

 

   

As of June 30,

 
   

2021

   

2020

 
                 
   

Years

   

Years

 

Weighted average remaining lease term:

    6.5       7.2  
   

Rate

   

Rate

 

Weighted average discount rate:

    7.7 %     7.8 %

 

Future maturities of lease liabilities as of June 30, 2021 are as follows (in thousands):

 

   

Operating

Leases

 

2021

  $ 545  

2022

    1,183  

2023

    979  

2024

    949  

2025

    914  

Thereafter

    2,253  

Total undiscounted lease payments

    6,823  

Less: Imputed interest

    (2,327 )

Total lease liabilities

  $ 4,496