XML 20 R11.htm IDEA: XBRL DOCUMENT

LEASES

6 Months Ended

Jun. 30, 2022

4. LEASES

During the six months ended June 30, 2022, the Company acquired right-of-use assets and operating lease liabilities of $953 thousand associated with entering into a 67-month 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, 2022 and December 31, 2021:

SCHEDULE OF CONSOLIDATED BALANCE SHEET

	June 30, 2022		December 31, 2021
	(in thousands)
Right of use asset balance
Operating lease	$	997	$	120
Lease liability balance
Short-term operating lease	$	157	$	114
Long-term operating lease		880		19
Total operating leases	$	1,037	$	133

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 office space in Golden, Colorado and our Houston, Texas office lease, prior to February 2021. In May 2022, the Company entered into a new 67-month lease for additional office space in Houston, Texas. The Company subleases its former 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, 2022 and 2021:

SCHEDULE OF LEASE COSTS

	2022			2021			2022			2021
	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
	(in thousands)
Operating lease cost	$	69		$	27		$	100		$	51
Short-term lease cost		2			12			4			18
Sublease income		(17	)		(16	)		(33	)		(32	)
Total lease costs	$	54		$	23		$	71		$	37

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,
	2022			2021
	(in thousands)
Weighted average lease term (years)		5.1			1.7
Weighted average discount rate		4.6	%		9.26	%

The future minimum lease commitments as of June 30, 2022 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 2022	$	78
2023		225
2024		213
2025		218
2026		224
2027		210
Total lease payments		1,168
Less: imputed interest		(131	)
Total lease liability	$	1,037

In August 2021, the Company sold its 14-acre tract in Riverton, Wyoming with a two-story, 30,400 square foot office building. The Company recognized, rental property income, net of rental operating expenses of $6 thousand and $23 thousand related to its Riverton, Wyoming office building for the three and six months ended June 30, 2021, respectively.