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Note 13 - Leases

9 Months Ended

Sep. 30, 2022

13.

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 nine (9) months ended September 30, 2022 and 2021, which are included in the condensed consolidated income statement, are as follows (in thousands):

		*Three Months Ended*				*Nine Months Ended*
		*September 30,*				*September 30,*
Lease Costs	*Classification*	*2022*		*2021*		*2022*		*2021*
Operating lease cost	Selling, General and Administrative Expense	$	103	$	255	$	358	$	690
Short-term lease cost	Selling, General and Administrative Expense		137		121		399		629
Variable costs	Selling, General and Administrative Expense		21		40		74		132
Total lease cost		$	261	$	416	$	831	$	1,451

Supplemental cash flow information related to SPAR’s leases for the three (3) and nine (9) months ended September 30, 2022 and 2021 is as follows (in thousands):

	*Three Months Ended*				*Nine Months Ended*
	*September 30,*				*September 30,*
	*2022*		*2021*		*2022*		*2021*

Cash paid for amounts included in the measurement of lease liabilities	$	245	$	256	$	775	$	691

Assets obtained in exchange for new operating lease liabilities
Operating lease	$	-	$	2	$	-	$	2

At September 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	$	230
2023		418
2024		282
2025		426
2026		79
Thereafter		104
Total Lease Payments		1,539
Less: imputed interest		347
Total	$	1,192