Note 12 - Leases

6 Months Ended

Jun. 30, 2021

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 June 30,*				*For the Six Months Ended June 30,*
	*2021*		*2020*		*2021*		*2020*
Operating Lease Cost (leases with a total term greater than 12 months)		$603		$527		$1,138		$1,074
Short-term Lease Cost (leases with a total term of 12 months or less)		33		130		83		374
Variable Lease Cost		66		145		242		273
Total Lease Cost		$702		$802		$1,463		$1,721

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 June 30,*				*For the Six Months Ended June 30,*
Supplemental cashflow information:	*2021*		*2020*		*2021*		*2020*
Operating Lease - Operating Cash Flows (Fixed Payments)	$	560	$	429	$	1,112	$	987
Operating Lease - Operating Cash Flows (Liability Reduction)	$	476	$	359	$	948	$	797
New ROU Assets - Operating Leases	$	1,169	$	36	$	2,563	$	911

Supplemental balance sheet information related to leases:	*June 30, 2021*			*December 31, 2020*
Weighted Average Discount Rate		3.30	%		3.60	%
Weighted Average Remaining Lease Term	7.87 yrs			8.35 yrs

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

	*June 30, 2021*
Remaining of 2021	$	1,311
2022		2,658
2023		2,670
2024		1,867
2025		1,248
Thereafter		4,246
Total future lease payments		14,000
Less imputed interest		1,528
Total	$	12,472

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 June 30, 2021, we have entered into lease agreements for total payments of $4.1 million that have not yet commenced, and therefore are not included in the lease liability.

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.