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Note 14 - Leases

12 Months Ended

Dec. 31, 2022

Lessee, Operating Leases and Finance Leases [Text Block]

The Company's lease portfolio is primarily comprised of operating leases for offices. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on whether the contract conveys the right to control the use of identified property or equipment for a period of time in exchange for consideration. Leases are classified as operating or finance leases at the commencement date of the lease.

Operating lease right of use assets and obligations are recognized within the Consolidated Balance Sheets based on the present value of lease payments over the lease term. As the implicit rate is generally not readily determinable for most leases, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate reflects the estimated rate of interest that the Company would pay to borrow on a collateralized basis over a similar term in a similar economic environment. Lease expense for operating leases is recognized on a straight-line basis over the lease term.

Leases may include one or more options to renew. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

For the year-ended December 31, 2022 and 2021, the Company recognized $579 and $379, respectively, of operating lease expense. Operating lease expense is recognized within general and administrative expenses in the Consolidated Statements of Operations.

The following table provides lease term and discount rate information related to operating leases as of December 31, 2022:

	*Year Ended*			*Year Ended*
	*December 31,*			*December 31,*
*(in thousands)*	*2022*			*2021*
Weighted Average Remaining Lease Term
Operating leases (in years)		3.2			2.8

Weighted Average Discount Rate
Operating leases		10.0	%		10.0	%

The following table sets forth the scheduled maturities of lease obligations as of December 31, 2022:

	*Operating*
*(in thousands)*	*Leases*
2023	$	755
2024		459
2025		455
2026		112
2027		86
Total undiscounted cash flows		1,867
Less imputed interest		(283	)
Present value of lease liabilities		1,584

Current maturities of operating leases		711
Long-term obligations under operating leases		873
Present value of lease liabilities	$	1,584

The following table provides supplemental information related to the Company's Consolidated Statements of Cash Flows for the years ended December 31, 2022 and 2021:

	*Year Ended*		*Year Ended*
	*December 31,*		*December 31,*
*(in thousands)*	*2022*		*2021*
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	597	$	383