XML 22 R12.htm IDEA: XBRL DOCUMENT

LEASES

6 Months Ended

Jun. 30, 2021

5. LEASES

During the six months ended June 30, 2021, the Company acquired right-of-use assets and operating lease liability of $82 thousand associated with entering into a non-cancellable, long-term lease agreement for office space in Houston, Texas. The Company’s right-of-use assets and lease liabilities are recognized at their discounted present value under the following captions in the consolidated balance sheets at June 30, 2021 and December 31, 2020:

SCHEDULE OF CONSOLIDATED BALANCE SHEET

		1		2
	June 30, 2021		December 31, 2020
	(in thousands)
Right of use asset balance
Operating lease	$	167	$	127
Lease liability balance
Short-term operating lease	$	107	$	65
Long-term operating lease		78		78
Total operating leases	$	185	$	143

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, Texas office lease, prior to February 2021, when the Company entered into a new 25-month lease for its Houston office. Beginning in March 2020, the Company subleased its Denver, Colorado office and recognizes sublease income as a reduction of rent expense. Following are the amounts recognized as components of rental expense for the three and six months ended June 30, 2021 and 2020:

SCHEDULE OF LEASE COSTS

		2021			2020			2021			2020
	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
	(in thousands)
Operating lease cost	$	27		$	17		$	51		$	34
Short-term lease cost		12			6			18			10
Sublease income		(16	)		(11	)		(32	)		(16	)
Total lease costs	$	23		$	12		$	37		$	28

The Company’s Denver and Houston office operating leases do not contain implicit interest rates that can be readily determined; therefore, the Company used the incremental borrowing rates in effect at the time the Company entered into the leases.

SCHEDULE OF WEIGHTED AVERAGE LEASE

	As of June 30,
	2021			2020

Weighted average lease term (years)		1.7			2.6
Weighted average discount rate		9.26	%		8.75	%

The future minimum lease commitments as of June 30, 2021, are presented in the table below in thousands. Such commitments are reflected at undiscounted values and are reconciled to the discounted present value on the consolidated balance sheet as follows:

	Amount
Remainder of 2021	$	60
2022		122
2023		17
Total lease payments		199
Less: imputed interest		(14	)
Total lease liability	$	185

As discussed in Note 3- Real Estate Held for Sale, the Company owns a 14-acre tract in Riverton, Wyoming with a two-story, 30,400 square foot office building. The building is not depreciated while it is held for sale. The net capitalized cost of the building and the land subject to operating leases at June 30, 2021 and December 31, 2020 are as follows:

SCHEDULE OF OPERATING LEASES

		1			2
	June 30, 2021			December 31, 2020
	(in thousands)
Building subject to operating leases	$	4,654		$	4,654
Land		380			380
Less: accumulated depreciation		(3,658	)		(3,658	)
Loss on leased real estate held for sale		(651	)		(651	)
Building subject to operating leases, net	$	725		$	725

The future lease maturities of the Company’s operating leases as of June 30, 2021 are presented in the table below. Such maturities are reflected at undiscounted values to be received on an annual basis.

SCHEDULE OF FUTURE LEASE MATURITIES

		1
	Amount
	(in thousands)
Remainder of 2021	$	82
2022		165
2023		169
2024		163
Remaining through June 2029		695
Total lease maturities	$	1,274

The Company recognized, as a component of rental and other loss in the unaudited condensed consolidated statements of operations, the following operating lease income and expense related to its Riverton, Wyoming office building for the three and six months ended June 30, 2021 and 2020:

SCHEDULE OF LOSS ON RENTAL PROPERTY

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
	(in thousands)
Operating lease income	$	51		$	54		$	102		$	110
Operating lease expense		(45	)		(43	)		(79	)		(86	)
Depreciation		-			(29	)		-			(59	)
Rental property gain (loss), net	$	6		$	(18	)	$	23		$	(35	)