XML 26 R9.htm IDEA: XBRL DOCUMENT

Operating Leases

9 Months Ended

Sep. 30, 2019

Solitario adopted ASU 2016-02 effective January 1, 2019 and accounts for its leases in accordance with ASC 842. Solitario leases one facility, its Wheat Ridge, Colorado administrative office (the “WR Lease”), that has a term of more than one year. Solitario has no other material operating lease costs. The WR Lease is classified as an operating lease and has a term of 17 months at September 30, 2019, with no renewal option. At September 30, 2019, the right-of-use office lease asset for the WR Lease is classified as other assets and the related liability separated between current and non-current office lease liabilities in the condensed consolidated balance sheet. Lease expense is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. During the three and nine months ended September 30, 2019, Solitario recognized $10,000 and $30,000, respectively, of non-cash lease expense for the WR Lease included in general and administrative expense. Cash lease payments of $10,000 and $27,000, respectively, were made on the WR Lease during the three and nine months ended September 30, 2019 and this amount, less $1,000 and $3,000, respectively, of imputed interest during the three and nine months ended September 30, 2019, reduced the related liability on the WR Lease. The discount rate within the WR Lease is not determinable and Solitario has applied a discount rate of 5% based upon Solitario’s estimate of its cost of capital.

The maturities of Solitario’s lease liability for its WR Lease are as follows at September 30, 2019:

(in thousands)
Lease payments per year
2019	$	10
2020		42
2021		7
Total lease payments		59
Less amount of payments representing interest		(2	)
Present value of lease payments	$	57

The following is supplemental cash flow information related to our operating lease for the nine months ended September 30, 2019:

(in thousands)	Nine months ended September 30, 2019

Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from WR Lease payments	$	27
Non-cash amounts related to the WR lease
Leased assets recorded in exchange for new operating lease liabilities	$	82