Leases

12 Months Ended

Dec. 31, 2024

15. Leases

The Group has one operating lease for office space in London, which was renegotiated upon completion of the original term, with the new term beginning in September 2022. The Group determines whether a contract is a lease or contains a lease at inception date. Upon commencement, the Group recognizes a right-of-use asset and lease liability. Right-of-use assets represent the Group’s right to use the underlying asset for the lease term. Lease liabilities are the Group’s obligation to make the lease payments arising from a lease. As the Group’s lease does not provide an implicit rate, the Group’s lease liabilities are measured on a discounted basis using the Group’s incremental borrowing rate. Lease terms used in the recognition of right-of-use assets and lease liabilities include only options to extend the lease that are reasonably certain to be exercised. Additionally, lease terms underlying the right-of-use assets and lease liabilities consider terminations that are reasonably certain to be executed.

There are two short-term leases in Berlin, Germany and eight leases in Hoboken, U.S., that have not been recognized as right-of-use assets. Both leases in Berlin are on a rolling contract basis with either party being able to end the lease with a cancellation notice period of 11.5 months, while the leases in the United States are on a rolling contract basis with a notice period of three months. Expense related to these short-term leases are recorded to the consolidated statements of income (loss) over the lease term.

The following table presents supplemental balance sheet information related to the Group’s operating lease:


		Year ended December 31,
		2024		2023
	Classification	$000s		$000s
Operating lease right-of-use asset	Other non-current assets		157		370

Lease liability - current	Current liabilities		117		228
Lease liability - non-current	Non-current liabilities		-		118

The following table summarizes the weighted-average remaining lease term and weighted-average discount rate for the Group’s operating leases at December 31, 2024 and 2023:


	2024	2023
Weighted-average remaining lease term	0.75 years	1.75 years
Weighted-average discount rate	7.0%	7.0%

The following table summarizes the components of total operating lease cost for fiscal year 2024, 2023, and 2022:


	Year ended December 31,
	2024		2023		2022
	$000s		$000s		$000s
Operating lease cost		248		242		80
Short-term lease cost		736		600		507
Total operating lease cost		984		842		587

The following table summarizes the maturities of the Group’s operating leases at December 31, 2024:


Fiscal year	Operating Leases
2025		117
2026		-
2027		-
2028		-
2029		-
Thereafter		-
Total expected lease payments		117
Less: Imputed interest		-
Total lease liability		117