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LEASES | 9 Months Ended
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Sep. 30, 2021
Leases |
LEASES | 5. LEASES During the nine months ended September 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 September 30, 2021 and December 31, 2020: SCHEDULE OF CONSOLIDATED BALANCE SHEET
|  | September 30, 2021 |  |  | December 31, 2020 |
|  | (in thousands) |
Right of use asset balance |  |  |  |  |  |  |  |
Operating lease |  | $ | 143 |  |  | $ | 127 |
Lease liability balance |  |  |  |  |  |  |  |
Short-term operating lease |  | $ | 110 |  |  | $ | 65 |
Long-term operating lease |  |  | 49 |  |  |  | 78 |
Total operating leases |  | $ | 159 |  |  | $ | 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 nine months ended September 30, 2021 and 2020: SCHEDULE OF LEASE COSTS
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
|  | (in thousands) |
Operating lease cost |  | $ | 31 |  |  | $ | 17 |  |  | $ | 95 |  |  | $ | 51 |
Short-term lease cost |  |  | 2 |  |  |  | 6 |  |  |  | 7 |  |  |  | 16 |
Sublease income |  |  | (16 | ) |  |  | (10 | ) |  |  | (48 | ) |  |  | (25 | )
Total lease costs |  | $ | 17 |  |  | $ | 13 |  |  | $ | 54 |  |  | $ | 42 |
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 September 30, |
|  | 2021 |  |  | 2020 |
Weighted average lease term (years) |  |  | 1.4 |  |  |  | 2.3 |
Weighted average discount rate |  |  | 9.26 | % |  |  | 8.75 | %
The future minimum lease commitments as of September 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: SCHEDULE OF FUTURE MINIMUM LEASE COMMITMENTS
|  | Amount |
Remainder of 2021 |  | $ | 30 |
2022 |  |  | 122 |
2023 |  |  | 18 |
Total lease payments |  |  | 170 |
Less: imputed interest |  |  | (11 | )
Total lease liability |  | $ | 159 |
As discussed in Note 3- Real Estate Held for Sale, during the three months ended September 30, 2021, the Company sold its 14-acre tract in Riverton, Wyoming with a two-story, 30,400 square foot office building. The building was not depreciated while it was held for sale. Prior to the sale of the building and land, the net capitalized cost subject to operating leases were as follows: SCHEDULE OF PROPERTY SUBJECT TO OPERATING LEASES
Building subject to operating leases |  | $ | 4,654 |
Land |  |  | 380 |
Less: accumulated depreciation |  |  | (3,658 | )
Loss on leased real estate held for sale |  |  | (651 | )
Building subject to operating leases, net |  | $ | 725 |
The Company recognized, as a component of rental property (loss) gain, net 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 nine months ended September 30, 2021 and 2020: SCHEDULE OF LOSS ON RENTAL PROPERTY
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
|  | (in thousands) |
Operating lease income |  | $ | 29 |  |  | $ | 51 |  |  | $ | 131 |  |  | $ | 161 |
Operating lease expense |  |  | (44 | ) |  |  | (56 | ) |  |  | (123 | ) |  |  | (143 | )
Depreciation |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (58 | )
Rental property (loss) gain, net |  | $ | (15 | ) |  | $ | (5 | ) |  | $ | 8 |  |  | $ | (40 | )

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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