XML 61 R11.htm IDEA: XBRL DOCUMENT
v3.19.3

Leases | 6 Months Ended
--- | ---
Jun. 30, 2019
Leases [Abstract] |
Leases | 3. LEASES On January 1, 2019, the Company adopted ASC 842 using the modified retrospective approach. Results for the reporting periods beginning January 1, 2019 are presented in accordance with ASC 842, while prior period amounts are reported in accordance with FASB ASC Topic 840-Leases. On January 1, 2019, the Company recorded a $228 thousand right-of-use asset and a $252 thousand lease liability representing the present value of minimum payment obligations associated with our Denver office operating lease, which has non-cancellable terms in excess of one year. We do not have any financing leases. The Company has elected the following practical expedients available under ASC 842 (i) excluding from the condensed consolidated balance sheet leases with terms that are less than one year, (ii) for agreements that contain both lease and non-lease components, combining these components together and accounting for them as a single lease, (iii) the package of practical expedients, which allows the Company to avoid reassessing contracts that commenced prior to adoption that were properly evaluated under legacy GAAP, and (iv) the policy election that eliminates the need for adjusting prior period comparable financial statements prepared under legacy lease accounting guidance. As such, there was no required cumulative effect adjustment to accumulated deficit at January 1, 2019. During the six months ended June 30, 2019, the Company did not acquire any right-of-use assets or incur any lease liabilities. The Company’s right-of-use assets and lease liabilities are recognized at their discounted present value on the unaudited condensed consolidated balance sheet at June 30, 2019, of $203 thousand and $228 thousand, respectively.
|  | June 30, 2019 |
|  | (in thousands) |
Other assets: |  |  |  |
Right-of-use asset |  |  | 203 |
Other current liabilities |  |  | 55 |
Other noncurrent liabilities |  | $ | 173 |
|  | Right-of Use Asset |  |  | Lease Liability |
|  | (in thousands) |
Corporate office lease |  | $ | 203 |  |  | $ | 228 |
The Company recognizes lease expense on a straight line basis excluding short-term and variable lease payments which are recognized as incurred. Short-term lease costs represent payments for our Houston office lease, which has a lease term of one year.
|  | Three Months Ended June 30, 2019 |  |  | Six Months Ended June 30, 2019 |
|  | (in thousands) |
Operating lease cost |  | $ | 17 |  |  | $ | 34 |
Short-term lease cost |  |  | 4 |  |  |  | 8 |
Total lease cost |  | $ | 21 |  |  | $ | 42 |
The Company’s Denver office operating lease does not contain an implicit interest rate that can be readily determined. Therefore, the Company used the incremental borrowing rate of 8.75% as established under the Company’s prior credit facility as the discount rate.
|  | June 30, 2019 |
Weighted average lease term (years) |  |  | 3.6 |
Weighted average discount rate |  |  | 8.75 | %
The future minimum lease commitments as of June 30, 2019 are presented in the table below. Such commitments are reflected at undiscounted values and are reconciled to the discounted present value on the unaudited condensed consolidated balance sheet as follows:
|  | Amount |
Remainder of 2019 |  | $ | 36 |
2020 |  |  | 73 |
2021 |  |  | 75 |
2022 |  |  | 76 |
2023 |  |  | 6 |
Total lease payments |  | $ | 266 |
Less: imputed interest |  |  | (38 | )
Total lease liability |  | $ | 228 |
The Company owns a 14-acre tract in Riverton, Wyoming with a two-story, 30,400 square foot office building, which served as the Company’s corporate headquarters until it relocated to Denver, Colorado in 2015. Currently, the building’s eight office suites are rented to non-affiliates and government agencies under operating leases with varying terms from month-to-month to twelve years. The building is included in property and equipment, net on our condensed consolidated balance sheet. The net capitalized cost of the building subject to operating leases at June 30, 2019 is as follows:
|  | June 30, 2019 |
|  | (in thousands) |
Building subject to operating leases |  | $ | 4,012 |
Less: accumulated depreciation |  |  | 3,186 |
Building subject to operating leases, net |  | $ | 826 |
The future lease maturities of the Company’s operating leases as of June 30, 2019 are presented in the table below. Such maturities are reflected at undiscounted values to be received on an annual basis.
|  | Amount |
|  | (in thousands) |
Remainder of 2019 |  | $ | 81 |
2020 |  |  | 127 |
2021 |  |  | 130 |
2022 |  |  | 134 |
2023 |  |  | 138 |
2024 |  |  | 142 |
Remaining through June 2029 |  |  | 695 |
Total lease maturities |  | $ | 1,446 |
The Company recognized the following operating lease income related to its Riverton, Wyoming office building for the three and six months ended June 30, 2019 and 2018:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
|  | (in thousands) |
Operating lease income |  | $ | 48 |  |  | $ | 44 |  |  | $ | 96 |  |  | $ | 89 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
Name: | us-gaap_LeasesOfLesseeDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration