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LEASES

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

LEASES

LEASES

The Company does not recognize leases with terms less than twelve months in duration, or that have variable only payments, in its Consolidated Balance Sheet as right-of-use assets and lease liabilities. The Company has adopted the practical expedient which allows for the Company to not separate lease and non-lease components of contracts. Accordingly, non-lease components are included in the measurement of the Company’s lease liabilities and right-of-use assets. If the Company is aware of the implicit rate in leases, the Company determines the operating lease liability using the implicit rate. For those leases where the Company is not aware of the implicit rate in the lease, the Company utilizes an incremental borrowing rate, which is indicative of its collateralized borrowing rate. We utilized rates of 1.83% to 6.49% for our outstanding leases at December 31, 2022.

Operating Leases

The Company leases its facility in Sofia, Bulgaria and computers under non-cancelable operating lease agreements. During the year ended December 31, 2022, the Company’s leases on the vehicles in Clearwater, Florida expired and the Company purchased the vehicles at fair value. During the year ended December 31, 2022, the Company entered into a one year extension on one of its leases on computer equipment. This extension resulted in reclassification of the lease from finance to operating. During the year ended December 31, 2022, the Company entered into a five year extension of its Sofia, Bulgaria facility. These operating leases have terms expiring through December 2027.

Finance Leases

The Company has entered into non-cancelable finance leases for certain computer equipment and a vehicle in Clearwater, Florida. During the year ended December 31, 2022, the Company entered into a 63 month lease for computer equipment. These finance leases have terms expiring through July 2027.

Information about the Company’s lease costs are as follows:

			Year Ended December 31,
Lease costs (in thousands):			2022			2021
Operating lease costs			$	213		$	134
Finance lease costs:
Amortization of right-of-use assets			138			216
Interest on lease liabilities			5			12
Variable lease costs			16			12
Total lease costs			$	372		$	374

Cash information related to our leases are as follows:

			Year Ended December 31, 2022									Year Ended December 31, 2021
(in thousands)			Operating			Finance						Operating			Finance
Cash paid for lease liabilities			$	219		$	153					$	135		$	228

Information about the Company’s weighted average remaining lease terms and discount rate assumptions are as follows:

			Year Ended December 31, 2022									Year Ended December 31, 2021
			Operating			Finance						Operating			Finance
Weighted average remaining lease term (in years)			4.4			3.9						1.0			0.8
Weighted average discount rate			2.54%			2.60%						3.98%			4.00%

Maturities of lease liabilities as of December 31, 2022 are as follows:

(In thousands)			Operating			Finance
2023			$	229		$	40
2024			122			21
2025			122			21
2026			122			21
2027			122			12
Total lease payments			717			115
Less imputed interest			(31)			(5)
Present value of lease liabilities			686			110
Less current portion of lease liabilities			(216)			(37)
Long-term portion of lease liabilities			$	470		$	73

LEASES

LEASES

The Company does not recognize leases with terms less than twelve months in duration, or that have variable only payments, in its Consolidated Balance Sheet as right-of-use assets and lease liabilities. The Company has adopted the practical expedient which allows for the Company to not separate lease and non-lease components of contracts. Accordingly, non-lease components are included in the measurement of the Company’s lease liabilities and right-of-use assets. If the Company is aware of the implicit rate in leases, the Company determines the operating lease liability using the implicit rate. For those leases where the Company is not aware of the implicit rate in the lease, the Company utilizes an incremental borrowing rate, which is indicative of its collateralized borrowing rate. We utilized rates of 1.83% to 6.49% for our outstanding leases at December 31, 2022.

Operating Leases

The Company leases its facility in Sofia, Bulgaria and computers under non-cancelable operating lease agreements. During the year ended December 31, 2022, the Company’s leases on the vehicles in Clearwater, Florida expired and the Company purchased the vehicles at fair value. During the year ended December 31, 2022, the Company entered into a one year extension on one of its leases on computer equipment. This extension resulted in reclassification of the lease from finance to operating. During the year ended December 31, 2022, the Company entered into a five year extension of its Sofia, Bulgaria facility. These operating leases have terms expiring through December 2027.

Finance Leases

The Company has entered into non-cancelable finance leases for certain computer equipment and a vehicle in Clearwater, Florida. During the year ended December 31, 2022, the Company entered into a 63 month lease for computer equipment. These finance leases have terms expiring through July 2027.

Information about the Company’s lease costs are as follows:

			Year Ended December 31,
Lease costs (in thousands):			2022			2021
Operating lease costs			$	213		$	134
Finance lease costs:
Amortization of right-of-use assets			138			216
Interest on lease liabilities			5			12
Variable lease costs			16			12
Total lease costs			$	372		$	374

Cash information related to our leases are as follows:

			Year Ended December 31, 2022									Year Ended December 31, 2021
(in thousands)			Operating			Finance						Operating			Finance
Cash paid for lease liabilities			$	219		$	153					$	135		$	228

Information about the Company’s weighted average remaining lease terms and discount rate assumptions are as follows:

			Year Ended December 31, 2022									Year Ended December 31, 2021
			Operating			Finance						Operating			Finance
Weighted average remaining lease term (in years)			4.4			3.9						1.0			0.8
Weighted average discount rate			2.54%			2.60%						3.98%			4.00%

Maturities of lease liabilities as of December 31, 2022 are as follows:

(In thousands)			Operating			Finance
2023			$	229		$	40
2024			122			21
2025			122			21
2026			122			21
2027			122			12
Total lease payments			717			115
Less imputed interest			(31)			(5)
Present value of lease liabilities			686			110
Less current portion of lease liabilities			(216)			(37)
Long-term portion of lease liabilities			$	470		$	73

X

- References

No definition available.

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- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI https://asc.fasb.org/subtopic&trid=77888251

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- Definition

The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI https://asc.fasb.org/subtopic&trid=77888251

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