Note 8 Leases
As of June 30, 2025, the balance of our right-of-use
(“ROU”) assets was $3.2 million, net and lease liabilities were $3.3 million, included in current portion, lease
liability and lease liability, net of current portion. The maturity of our lease liabilities as of June 30, 2025 is as follows in
(“000’s”):
| Year | |
Finance | | |
Operating | |
| 2025 | |
$ | 168 | | |
$ | 812 | |
| 2026 | |
| 122 | | |
| 830 | |
| 2027 | |
| 64 | | |
| 519 | |
| 2028 | |
| — | | |
| 166 | |
| 2029 | |
| — | | |
| 169 | |
| Thereafter | |
| — | | |
| 780 | |
| Total undiscounted Lease Payments | |
| 354 | | |
| 3,276 | |
| Less: Present value discount | |
| (12 | ) | |
| (330 | ) |
| Total Lease Liability | |
$ | 342 | | |
$ | 2,946 | |
Lease expense recognized on our leases is as follows
in (“000’s”):
| | | Six months
Ended
June 30,
2025 | | | Six months
Ended
June 30,
2024 | | | Three months
Ended
June 30,
2025 | | | Three months
Ended
June 30,
2024 | | | Finance leases | | | | | | | | | | | | | | Amortization expense | | $ | 72 | | | $ | 83 | | | $ | 41 | | | $ | 41 | | | Interest expense | | | 6 | | | | 8 | | | | 3 | | | | 4 | | | Operating leases | | | | | | | | | | | | | | | | | | Straight-line rent expense | | | 395 | | | | 389 | | | | 197 | | | | 194 | | | Total lease expense | | $ | 473 | | | $ | 480 | | | $ | 241 | | | $ | 239 | |
The following summarizes additional information
related to our leases for 2025 and 2024 in (“000’s”):
| | | Six months ended
June 30, 2025 | | | Three months ended
June 30, 2024 | | | | | Finance | | | Operating | | | Finance | | | Operating | | | Weighted-average remaining lease terms (years) | | | 2.3 | | | | 5.7 | | | | 2.6 | | | | 3.4 | | | Weighted-average discount rate | | | 3.51 | % | | | 3.47 | % | | | 4.00 | % | | | 2.95 | % | | ROU assets obtained in exchange for new lease liabilities | | $ | 180 | | | $ | 1,395 | | | $ | 63 | | | $ | — | |
|