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Operating Leases

12 Months Ended

Dec. 31, 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 14 months at December 31, 2019, with no renewal option. At December 31, 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 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 2019, Solitario recognized $40,000 of non-cash lease expense for the WR Lease included in general and administrative expense. Cash lease payments of $37,000 were made on the WR Lease during 2019 and this amount, less $3,000 of imputed interest during 2019, reduced the related liability on the WR Lease. The discount rate within the WR Lease is not determinable and Solitario applied a discount rate of 5% based upon Solitario’s estimate of its cost of capital in recording the WR Lease.

The maturities of Solitario’s lease liability for its WR Lease are as follows at December 31, 2019:

(in thousands)
Lease payments per year
2020	$	42
2021		7
Total lease payments		49
Less amount of payments representing interest		(1	)
Present value of lease payments	$	48

The following is supplemental cash flow information related to our operating lease for 2019:

(in thousands)	Year ended December 31, 2019

Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from WR Lease payments	$	37
Non-cash amounts related to the WR lease
Right of use assets recorded in exchange for new operating lease liabilities	$	82