XML 23 R11.htm IDEA: XBRL DOCUMENT

Note 4 - Leases

9 Months Ended

Sep. 30, 2023

4. LEASES

The Company’s operating lease right-of-use assets and lease liabilities are recognized at their discounted present value under the following captions in the condensed consolidated balance sheets at September 30, 2023 and December 31, 2022:

	*September 30, 2023*		*December 31, 2022*
	(in thousands)
Right-of-use assets	$	733	$	868
Lease liabilities
Current lease obligation	$	179	$	189
Long-term lease obligation		658		794
Total lease liabilities	$	837	$	983

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 cost represents payments for office leases with original terms less than one year. Beginning in March 2020, the Company subleased its Denver, Colorado office and recognized sublease income as a reduction of rent expense. The term of the sublease was through the term of the Company’s Denver office lease, which terminated on January 31, 2023. Following are the amounts recognized as components of rental expense for the three and nine months ended September 30, 2023 and 2022:

	*Three Months Ended September 30,*					*Nine Months Ended September 30,*
	*2023*		*2022*			*2023*		*2022*
	(in thousands)
Operating lease cost	$	49	$	77		$	162	$	177
Short-term lease cost		312		2			731		6
Sublease income		-		(21	)		-		(54	)
Total lease costs	$	361	$	58		$	893	$	129

The Company’s Houston office operating lease does 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.

	*As of September 30,*
	*2023*			*2022*
	(in thousands)
Weighted average lease term (years)		4.2			5.0
Weighted average discount rate		4.25	%		4.47	%

Maturity of operating lease liabilities with terms of one year or more as of September 30, 2023 are presented in the following table:

	*September 30, 2023*
	(in thousands)
2023	$	52
2024		213
2025		218
2026		224
2027		210
Total lease payments	$	917
Less: imputed interest		(80	)
Total lease liability	$	837