XML 22 R10.htm IDEA: XBRL DOCUMENT

Note 4 - Leases

3 Months Ended

Mar. 31, 2024

4. LEASES

The Company’s operating lease right-of-use asset and lease liability are recognized at their discounted present value under the following captions in the Condensed Consolidated Balance Sheets on March 31, 2024 and December 31, 2023:

	*March 31, 2024*		*December 31, 2023*
	(in thousands)
Right-of-use asset	$	653	$	693
Lease liability
Current lease obligation	$	186	$	182
Long-term lease obligation		564		611
	$	750	$	793

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 oilfield equipment with original lease terms less than one year. Following are the amounts recognized as components of lease cost for the three months ended March 31, 2024 and 2023:

	*Three Months Ended March 31,*
	*2024*		*2023*
	(in thousands)
Operating lease cost	$	49	$	65
Short-term lease cost		212		269
Total lease costs	$	261	$	334

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 March 31,*
	*2024*			*2023*
	(in thousands)
Weighted average lease term (years)		3.7			4.7
Weighted average discount rate		4.25	%		4.25	%

Maturity of operating lease liabilities with terms of one year or more as of March 31, 2024 are presented in the following table:

	*March 31, 2024*
	(in thousands)
2024	$	160
2025		218
2026		224
2027		210
Total lease payments	$	812
Less: imputed interest		(62	)
Total lease liability	$	750