XML 32 R21.htm IDEA: XBRL DOCUMENT v3.23.2
LEASES
 6 Months Ended
Jun. 30, 2023
Leases  
LEASES

NOTE 13 – LEASES

 

Leases

 

The Company leases office space in the United States under operating lease agreements. The Company also entered into an arrangement with Applied Blockchain for the use of energized cryptocurrency mining facilities under which the Company pays for electricity per megawatt based on usage. The Company has determined that it has embedded operating leases at two of the facilities governed by this arrangement that commenced in January and March 2023, and has elected not to separate lease and non-lease components. Payments made for these two operating leases are therefore entirely variable and are based on usage of electricity, and the Company therefore does not record a right-of-use asset or lease liability associated with the leases. Variable lease cost during the six months ended June 30, 2023 are disclosed in the table below. Office space and mining facilities comprise the Company’s material underlying asset classes under operating lease agreements. The Company has no material finance leases.

 

As of June 30, 2023, the Company’s right-of-use (“ROU”) assets and total lease liabilities were $559 and $597, respectively. As of December 31, 2022, the Company’s ROU assets and total lease liabilities were $1,276 and $1,343, respectively. The Company has amortized right-of-use assets totaling $71 and $29 for the three months ended June 30, 2023 and 2022, respectively. The Company has amortized right-of-use assets totaling $167 and $48 for the six months ended June 30, 2023 and 2022, respectively.

 

Operating lease costs are recorded on a straight-line basis within operating expenses. The Company’s total lease expense is comprised of the following:

 

 SCHEDULE OF COMPONENTS OF LEASE COST

   2023   2022   2023   2022 
   For the Three Months Ended June 30,   For the Six Months Ended June 30, 
   2023   2022   2023   2022 
Operating leases                    
Operating lease cost  $74   $74   $185   $100 
Operating lease expense   74    74    185    100 
Short-term lease rent expense   11    8    20    15 
Variable lease cost   17,165    —    19,938    — 
Total rent expense  $17,250   $82   $20,143   $115 

 

Additional information regarding the Company’s leasing activities as a lessee is as follows:

 

 SUMMARY OF MINIMUM LEASE PAYMENTS

   For the Six Months Ended June 30, 
   2023   2022 
Operating cash flows from operating leases  $229   $27 
Weighted-average remaining lease term – operating leases   3.4    4.4 
Weighted-average discount rate – operating leases   5%   5%

 

Year  Amount 
2023 (remaining)  $133 
2024   166 
2025   143 
2026   147 
2027   63 
Thereafter   — 
Total  $652