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Note 12 - Leases

9 Months Ended

Sep. 30, 2022

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 September 30,*				*For the Nine Months Ended September 30,*
	*2022*		*2021*		*2022*		*2021*
Operating Lease Cost (leases with a total term greater than 12 months)	$	1,234	$	674	$	3,050	$	1,812
Short-term Lease Cost (leases with a total term of 12 months or less)		72		21		156		103
Variable Lease Cost		267		179		523		421
Total Lease Cost	$	1,573	$	874	$	3,729	$	2,336

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 September 30,*				*For the Nine Months Ended September 30,*
Supplemental cashflow information:	*2022*		*2021*		*2022*		*2021*
Operating Lease - Operating Cash Flows (Fixed Payments)	$	1,697	$	2,929	$	3,571	$	4,040
Operating Lease - Operating Cash Flows (Liability Reduction)	$	1,132	$	590	$	2,797	$	1,538
New ROU Assets - Operating Leases	$	2,339	$	4,188	$	5,884	$	6,751

Supplemental balance sheet information related to leases:	*September 30, 2022*			*December 31, 2021*
Weighted Average Discount Rate		3.60	%		3.09	%
Weighted Average Remaining Lease Term	6.71 yrs			7.74 yrs

Maturity of lease liability as of September 30, 2022 (Dollar amounts in thousands of U.S. dollars):

	*September 30, 2022*
Remaining of 2022	$	1,267
2023		5,068
2024		4,268
2025		2,760
2026		1,664
Thereafter		4,119
Total future lease payments		19,145
Less imputed interest		1,726
Total	$	17,419

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 September 30, 2022, we have not entered into lease agreements that have not yet commenced.

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.