Annual report [Section 13 and 15(d), not S-K Item 405]

Leases

v3.25.1
Leases
12 Months Ended
Dec. 31, 2024
Leases  
Leases

8. Leases

 

The Company leases facilities and certain equipment under agreements classified as operating leases, which expire at various dates through June 2028. Substantially all of the property leases provide for increases based upon use of utilities and landlord’s operating expenses as well as pre-defined rent escalations. Total operating lease expense from continuing operations under these agreements for the years ended December 31, 2024 and 2023 was approximately $0.7 million and $0.8 million, respectively. Total cash paid under these agreements for the years ended December 31, 2024 and 2023 was approximately $0.7 million and $0.8 million, respectively.

 

The table below presents the lease-related assets and liabilities recorded in the Consolidated Balance Sheets:

 

    Classification on the Balance Sheet   December 31, 2024     December 31, 2023  
                 
Assets                    
Operating lease assets   Operating lease right of use assets     1,613       1,864  
Total lease assets       $ 1,613     $ 1,864  
                     
Liabilities                    
Current                    
Operating lease liabilities   Other accrued expenses     383       377  
Total current lease liabilities   Other accrued expenses   $ 383     $ 377  
Noncurrent                    
Operating lease liabilities   Operating lease liabilities, net of current portion     1,183       1,472  
Total long-term lease liabilities         1,183       1,472  
Total lease liabilities       $ 1,566     $ 1,849  

  

 

The weighted average remaining lease term for the Company’s operating leases was 3.5 years as of December 31, 2024 and 4.3 years as of December 31, 2023 and the weighted average discount rate for those leases was 12.0% and 11.8% as of December 31, 2024 and December 31, 2023, respectively. The Company’s operating lease expenses are recorded within “Cost of revenue” and “General and administrative expenses.”

 

The table below reconciles the undiscounted cash flows to the lease liabilities recorded on the Company’s Consolidated Balance Sheet as of December 31, 2024:

 

    Operating Leases  
2025   $ 550  
2026     550  
2027     550  
2028     275  
Total minimum lease payments     1,925  
Less: amount of lease payments representing effects of discounting     359  
Present value of future minimum lease payments     1,566  
Less: current obligations under leases     383  
Long-term lease obligations   $ 1,183