XML 23 R12.htm IDEA: XBRL DOCUMENT v3.24.3
LEASES
 9 Months Ended
Sep. 30, 2024
Leases  
LEASES

NOTE 6—LEASES

 

OmniMetrix leases office space and office equipment under operating lease agreements. The office lease has an expiration date of September 30, 2025. The office equipment lease was entered into in April 2019 and had a sixty-month term. This lease is currently month-to-month until the Company negotiates a new term. Operating lease payments for the nine months ended September 30, 2024 and 2023 were $97,000 and $96,000, respectively. Operating lease payments for the three months ended September 30, 2024 and 2023 were $33,000 and $33,000, respectively. The present value of future minimum lease payments on non-cancellable operating leases as of September 30, 2024 using a discount rate of 4.5% is $129,000. The 4.5% discount rate used was the estimated incremental borrowing rate when the lease was entered into, which, as defined in ASC 842: Leases, is the rate of interest that a lessee would have to pay to borrow, on a collateralized basis, over a similar term and in a similar economic environment, an amount equal to the lease payments.

 

 

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

 

 

For the Nine Months

Ending September 30,

 
   2024   2023 
Cash paid for operating lease liabilities  $97   $96 

 

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

 

    

As of

September 30, 2024

 
Weighted average remaining lease terms for operating leases   1 year  

 

The table below reconciles the undiscounted future minimum lease payments under non-cancelable lease agreements having initial terms of more than one year to the total operating lease liabilities recognized on the unaudited condensed consolidated balance sheet as of September 30, 2024 (in thousands):

 

 

Year ended

September 30,

 
2025  $132 
Total undiscounted cash flows   132 
Less: Imputed interest   (3)
Present value of operating lease liabilities (a)  $129 

 

  (a) The total amount represents the current portion of $129,000 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 (plus an annual escalator each year of 3%) 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. During each of the nine- and three-month periods ended September 30, 2024 and 2023, after the offset of the investment in leasehold improvements and other expenses related to the sublease, the Company paid its landlord $7,000 and $0, respectively. The Company has paid a total of $16,000 for its share of the sublease profit since the lease commencement. In addition to the $16,000 paid since inception, $2,000 in sublease profit due has been accrued at September 30, 2024. 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. Below are the future payments (in thousands) expected under the sublease net of the estimated annual service cost of $2,000:

 

Total undiscounted cash flows - sublease: 

Year ended

September 30,

 
2025  $29