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Note 12 - Leases

6 Months Ended

Jun. 30, 2022

12.

Leases

The Company is a lessee under certain operating leases for office space and equipment.

Many of SPAR's equipment leases are short-term or cancellable with notice. SPAR’s office space leases have remaining lease terms between one and eleven (11) years, many of which include one (1) or more options to extend the term for periods thereafter. The extension options and termination options may be exercised at SPAR’s sole discretion. SPAR does not consider in the measurement of ROU assets and lease liabilities an option to extend or terminate a lease if SPAR is not reasonably certain to exercise the option. As of the end of this reporting period, SPAR has not included any options to extend or terminate in its measurement of ROU assets or lease liabilities.

The components of SPAR's lease expenses for the three (3) and six (6) months ended June 30, 2022 and 2021, which are included in the condensed consolidated income statement, are as follows (in thousands):

		*Three Months Ended*				*Six Months Ended*
		*June 30,*				*June 30,*
Lease Costs	*Classification*	*2022*		*2021*		*2022*		*2021*
Operating lease cost	Selling, General and Administrative Expense	$	114	$	218	$	255	$	435
Short-term lease cost	Selling, General and Administrative Expense		137		206		262		508
Variable costs	Selling, General and Administrative Expense		24		42		53		92
Total lease cost		$	275	$	466	$	570	$	1,035

Supplemental cash flow information related to SPAR’s leases for the three (3) and six (6) months ended June 30, 2022 and 2021 is as follows (in thousands):

	*Three Months Ended*				*Six Months Ended*
	*June 30,*				*June 30,*
	*2022*		*2021*		*2022*		*2021*

Cash paid for amounts included in the measurement of lease liabilities	$	258	$	426	$	529	$	946

Assets obtained in exchange for new operating lease liabilities
Operating lease	$	-	$	-	$	-	$	-

At June 30, 2022, SPAR had the following maturities of lease liabilities related to office space and equipment, all of which are under non-cancellable operating leases (in thousands):

Period Ending December 31,	Amount
2022	$	481
2023		384
2024		247
2025		392
2026		45
Thereafter		96
Total Lease Payments		1,645
Less: imputed interest		348
Total	$	1,297