XML 21 R10.htm IDEA: XBRL DOCUMENT

LEASES

9 Months Ended

Sep. 30, 2021

NOTE 4—LEASES

OmniMetrix leases office space and office equipment under operating lease agreements. The office lease expires on September 30, 2025. The office equipment lease commenced in April 2019 and has a sixty-month term. Operating lease payments for the nine months ended September 30, 2021 and 2020 were approximately $90,000 and $48,000, respectively. Operating lease payments for the three months ended September 30, 2021 and 2020 were approximately $30,000 and $10,000, respectively. The future minimum lease payments on non-cancellable operating leases as of September 30, 2021 using a discount rate of 4.5% are $471,000. Supplemental balance sheet information related to leases consisted of the following:

Supplemental cash flow information related to leases consisted of the following (in thousands):

	September 30,
	2021		2020
Cash paid for operating lease liabilities	$	90	$	48

Supplemental balance sheet information related to leases consisted of the following:

		2021
Weighted average remaining lease terms for operating leases			3.98

The table below reconciles the undiscounted future minimum lease payments under non-cancelable lease agreements having initial terms in excess of one year to the total operating lease liabilities recognized on the unaudited condensed consolidated balance sheet as of September 30, 2021 (in thousands):

	Twelve-month period ended September 30,
2022	$	124
2023		127
2024		129
2025		132
Total undiscounted cash flows		512
Less: Imputed interest		(41	)
Present value of operating lease liabilities (a)	$	471

(a)

Includes current portion of $105,000 for operating leases.

On July 6, 2021, the Company entered into an agreement with King Industrial Realty, Inc., to sublease from the Company 1,900 square feet of office space of the Company’s 21,000 square feet of office and production space in the Hamilton Mill Business Park located in Buford, Georgia for a monthly sublease payment of $2,375 which includes the base rent plus a pro-rata share of utilities, property taxes and insurance. Fifty percent of any excess rent received above the per square foot amount that the Company pays will be remitted to the Company’s landlord less the allocation of any shared expenses and leasehold improvements specific to the sublease. The Company invested approximately $7,000 on leasehold improvements related to the sublease. Due to the offset of the capital expenditures, the Company does not expect to have any net rent due to its landlord for the first twelve months of the sublease. The estimated amount the Company expects to remit to the landlord subsequent to the first twelve months is approximately $6,700 per year. The sublease commenced on October 1, 2021 and will run through September 30, 2025 which is the end of the Company’s lease term with its landlord.