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Note 13 - Leases

12 Months Ended

Dec. 31, 2023

13. Leases

We lease datacenters, corporate offices, antenna tower 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):

	*Year Ended*		*Year Ended*
	*December 31, 2023*		*December 31, 2022*
Operating lease cost (leases with a total term greater than 12 months)	$	5,710	$	4,200
Short-term lease cost (leases with a total term of 12 months or less)		196		244
Variable lease cost		1,878		1,223
Total lease cost	$	7,784	$	5,667

Lease Cost is presented in general and administrative expenses and direct cost of revenues within our consolidated statements of operations and comprehensive income.

Information related to leases was as follows (Dollar amounts in thousands of U.S. dollars):

	*Year Ended*		*Year Ended*
Supplemental cashflow information:	*December 31, 2023*		*December 31, 2022*
Operating lease - operating cash flows (fixed payments)	$	6,088	$	4,896
Operating lease - operating cash flows (liability reduction)	$	5,170	$	3,984
New Right of Use assets - operating leases	$	11,388	$	6,726

Supplemental balance sheet information related to leases:	*December 31, 2023*			*December 31, 2022*
Weighted average discount rate		6.92	%		4.14	%
Weighted average remaining lease term	10.57 yrs			6.56 yrs

Maturity of lease liability as of December 31, 2023 (Dollar amounts in thousands of U.S. dollars):

	*December 31, 2023*
2024	$	6,717
2025		5,349
2026		3,478
2027		2,204
2028		1,769
Thereafter		15,307
Total future lease payments		34,824
Less interest		11,172
Total	$	23,652

Operating lease payments include payments under the non-cancellable term, without any additional amounts related to options to extend lease terms that are not reasonably certain of being exercised.

As of December 31, 2023, we have not entered into any lease agreements 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.