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Leases

6 Months Ended

Jun. 30, 2020

Solitario adopted ASU 2016-02 Leases effective January 1, 2019 and accounts for its leases in accordance with Accounting Standards Codification (“ASC”) 842. Solitario leases one facility, its Wheat Ridge, Colorado 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 8 months remaining at June 30, 2020, with no renewal option. At June 30, 2020, the right-of-use office lease asset for the WR Lease is classified as other assets and the related liability as current office lease liabilities in the condensed consolidated balance sheet. The amortization of right of use lease asset 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 six months ended June 30, 2020 Solitario recognized $10,000 and $20,000, respectively, of non-cash amortization of right of use lease asset expense for the WR Lease included in general and administrative expense. During the three and six months ended June 30, 2019 Solitario recognized $10,000 and $20,000, respectively, of non-cash amortization of right of use lease asset expense for the WR Lease included in general and administrative expense. During the three and six months ended June 30, 2020 cash lease payments of $11,000 and $21,000, respectively, were made on the WR Lease. During the three and six months ended June 30, 2019 cash lease payments of $10,000 and $17,000, respectively, were made on the WR Lease. These cash payments, less imputed interest for each period, reduced the related liability on the WR Lease. The discount rate within the WR Lease was not determinable at the inception of the WR Lease, 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 June 30, 2020:

Future lease payments (in thousands)

2020		21
2021		7
Total lease payments		28
Less amount of payments representing interest		-
Present value of lease payments	$	28

Supplemental cash flow information related to our operating lease was as follows:

(in thousands)	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from WR Lease payments	$	11	$	10	$	21	$	17
Non-cash amounts related to the WR lease
Leased assets recorded in exchange for new operating lease liabilities	$	-	$	82	$	-	$	82