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Fixed Assets

12 Months Ended

Dec. 31, 2023

Fixed Assets

Note 3 – Fixed Assets

Fixed Assets

Fixed assets are summarized as follows:


		December 31,
(in thousands)		2023			2022
Machinery and equipment		$	—		$	390
Office furniture and equipment			60			177
Leasehold improvements			43			192
			103			759
Accumulated depreciation and amortization			(63)			(697)
			40			62
Operating lease ROU assets, net			235			322
Total		$	275		$	384

Depreciation and amortization expense for the years ended 2023 and 2022 totaled $152 thousand and $24 thousand, respectively. In the year ended December 31, 2023, we impaired $81 thousand of machinery and equipment, specifically demonstration burners. These burners were capitalized at $209 thousand, and at the time of impairment, the associated accumulated depreciation amounted to $128 thousand.

Leases

The Company leases office space in Tulsa, Oklahoma, Seattle, Washington and Beijing, China. During June 2023, the Company renewed its Beijing, China lease agreement for 13 months with monthly rent at approximately $3 thousand. The Company increased the right of use asset and lease liability by $34 thousand.

During March 2023, the Company amended its Seattle lease to extend the lease term to September 2023. The amended lease reduced the square footage and lowered the monthly payment to approximately $4 thousand. The Company increased the right of use asset by $5 thousand and decreased the lease liability by $9 thousand. During October 2023, the Company entered into a sub-lease agreement to rent office space in Seattle for approximately $2 thousand per month for twelve months. The Tulsa and Beijing leases are classified as operating leases, with remaining terms ranging from less than twelve months to four years; contractual language requires renewal

negotiations to occur at or near termination. These leases are normal and customary for office space, in that, contractual guarantees exist requiring the lessee return the premises to its original functional state. The Company incurred restoration expenses of $33 thousand and $55 thousand for the years ended December 31, 2023 and 2022, respectively.

The Tulsa lease contains fixed annual lease payments that increase annually by 2%. The Seattle, Tulsa, and Beijing total monthly minimum rent is approximately $10 thousand. Operating lease costs for the years ended December 31, 2023 and 2022 were $141 thousand and $186 thousand, respectively.

Supplemental balance sheet information related to operating leases is as follows:


			December 31,			December 31,
(in thousands)			2023			2022
Operating lease ROU assets, net		$	235		$	322
Lease Liabilities:
Current lease liabilities		$	71		$	133
Long term lease liabilities			172			226
Total lease liabilities		$	243		$	359

Weighted average remaining lease term (in years):			2.4
Weighted average discount rate:			5.2	%

Supplemental cash flow information related to leases is as follows:


		For the Year Ended
		December 31,
(in thousands)			2023			2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases		$	158		$	251
Non-cash impact of new leases and lease modifications
Change in operating lease liabilities		$	25		$	25
Change in operating lease ROU assets		$	39		$	—

Minimum future payments under the Company’s lease liabilities as of December 31, 2023 are as follows:


		Discounted			Payments
		lease			due under
(in thousands)		liability			lease
		payments			agreements
2024		$	71		$	81
2025			59			66
2026			63			67
2027			50			51
Total		$	243		$	265

At December 31, 2023, $22 thousand of our future minimum lease payments represents interest.