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COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

9. COMMITMENTS AND CONTINGENCIES

 

Leases

 

The Company leases certain offices, facilities and equipment under operating and financing leases. Our leases have remaining terms ranging from less than 1 year to 5 years some of which contain options to extend up to 5 years. As of December 31, 2022 and 2021, assets recorded under finance leases were $1.3 million and $1.6 million, respectively, and accumulated amortization associated with finance leases were $534 and $1.1 million, respectively.

 

As of December 31, 2022 and 2021, assets recorded under operating leases were $2.2 million and $3.9 million, respectively, and accumulated amortization associated with operating leases were $798 and $2.3 million, respectively. During the fourth quarter of 2022, the Company executed an extension of its operating lease for the corporate management and sales office in Fort Lee, New Jersey. After adjusting for a weighted average discount rate, the Company recognized a right-of-use asset and lease liability of approximately $275 within the consolidated balance sheets.

 

The components of the lease expense were as follows:

 

   2022   2021 
   Year Ended 
   December 31, 
   2022   2021 
Operating lease cost  $752   $641 
           
Finance lease cost          
Amortization of right-of-use asset  $238   $285 
Interest on lease liabilities   44    41 
Total finance lease cost  $282   $326 

 

 

Other information related to leases was as follows:

 

Supplemental cash flows information:

 

   2022   2021 
   December 31, 
   2022   2021 
Cash paid for amounts included in the measurement of lease liabilities          
Operating cash flow payments for operating leases  $742   $632 
Operating cash flow payments for finance leases   44    41 
Financing cash flow payments for finance leases   241    292 
Right-of-use assets obtained in exchange for lease obligations          
Operating lease liabilities arising from obtaining right of use assets   440    1,418 
Capitalized lease obligations   401    180 

 

Weighted average remaining lease term:

 

    December 31, 
    2022    2021 
Operating leases   2 years    3 years 
Finance leases   2 years    2 years 

 

Weighted average discount rate:

 

   December 31, 
   2022   2021 
Operating leases   5.50%   5.50%
Finance leases   6.73%   6.69%

 

Future minimum lease payments under non-cancellable leases as of December 31, 2022 were as follows:

 SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS

   Operating   Finance 
   Leases   Leases 
2023  $774   $397 
2024   613    166 
2025   200    174 
2026   24    88 
Thereafter   -    41 
Total future minimum lease payments   1,611    866 
Less imputed interest   (111)   (93)
Total future minimum lease payments  $1,500   $773 

 

Reported as of December 31, 2022:

 SCHEDULE OF LEASE REPORTED

   Operating   Finance 
   Leases   Leases 
Right-of-use assets  $1,450   $727 

 

   Operating   Finance 
   Leases   Leases 
Accounts payable and accrued liabilities  $703   $355 
Other long-term liabilities   797    418 
Total  $1,500   $773 

 

 

 

Litigation and Claims

 

As of the date hereof, we are not aware of or a party to any legal proceedings to which we or any of our subsidiaries is a party or to which any of our property is subject, nor are we aware of any such threatened or pending litigation or any such proceedings known to be contemplated by governmental authorities that we believe could have a material adverse effect on our business, financial condition or operating results.

 

We are not aware of any material proceedings in which any of our directors, officers or affiliates or any registered or beneficial shareholder of more than 5% of our common stock is an adverse party or has a material interest adverse to our interest.