XML 30 R18.htm IDEA: XBRL DOCUMENT

Note 12 - Leases

6 Months Ended

Jun. 30, 2024

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,*
	*2024*		*2023*		*2024*		*2023*
Operating lease cost (leases with a total term greater than 12 months)	$	1,695	$	1,347	$	3,358	$	2,638
Short-term lease cost (leases with a total term of 12 months or less)		9		49		17		146
Variable lease cost		583		449		1,174		916
Total lease cost	$	2,287	$	1,845	$	4,549	$	3,700

Lease Cost is presented in general and administrative expenses and network expenses within our consolidated statements of operations and comprehensive loss.

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 cash flow information:	*2024*		*2023*		*2024*		*2023*
Operating lease - operating cash flows (fixed payments)	$	1,796	$	1,464	$	3,639	$	2,858
Operating lease - operating cash flows (liability reduction)	$	1,418	$	1,263	$	2,899	$	2,495
Change due to new right of use assets - operating leases	$	1,702	$	296	$	4,107	$	3,117

Supplemental balance sheet information related to leases:	*June 30, 2024*			*December 31, 2023*
Weighted average discount rate		7.41	%		6.92	%
Weighted average remaining lease term	12.01 yrs			10.57 yrs

Maturity of lease liability as of June 30, 2024 (Dollar amounts in thousands of U.S. dollars):

	*June 30, 2024*
Remaining of 2024	$	3,668
2025		5,982
2026		4,100
2027		2,608
2028		2,128
Thereafter		20,717
Total future lease payments		39,203
Less imputed interest		14,519
Total	$	24,684

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, 2024, 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.