Note 8.
Leases
We
entered into various arrangements (or leases) that convey the rights to use and control identified underlying assets for a period of
time in exchange for consideration. We lease various offices and equipment. From time to time, we may also enter
into an arrangement in which the right to use and control an identified underlying asset is embedded in another type of contract.
The
components of lease cost for the Company’s leases were as follows (in thousands):
| | |
Year Ended December 31, | |
| | |
2025 | | |
2024 | |
| Operating Leases: | |
| | |
| |
| Lease cost | |
$ | 147 | | |
$ | 159 | |
| | |
| | | |
| | |
| Finance Leases: | |
| | | |
| | |
| Amortization of ROU assets | |
| 5 | | |
| 1 | |
| Interest on lease liability | |
| 1 | | |
| 1 | |
| | |
| | | |
| | |
| Total lease cost | |
$ | 153 | | |
$ | 161 | |
Supplemental
information related to the Company’s leases are as follows:
| | | As of December 31, | | | | | 2025 | | | 2024 | | | Operating lease | | | | | | | | Weighted-average remaining lease term (in years) | | | 1.7 | | | | 2.7 | | | Weighted-average discount rate | | | 8.47 | % | | | 8.47 | % | | Finance lease | | | | | | | | | | Weighted-average remaining lease term (in years) | | | 3.6 | | | | 4.6 | | | Weighted-average discount rate | | | 9.00 | % | | | 9.00 | |
The
remaining future minimum lease payments under the Company’s leases are as follows (in thousands):
| Year
ending December 31, |
|
Operating
Leases |
|
|
Finance
Leases |
|
| 2026 |
|
$ |
144 |
|
|
$ |
4 |
|
| 2027 |
|
|
147 |
|
|
|
4 |
|
| 2028 |
|
|
12 |
|
|
|
4 |
|
| 2029 |
|
|
- |
|
|
|
3 |
|
| 2030 |
|
|
- |
|
|
|
- |
|
| Total future minimum lease obligation |
|
$ |
303 |
|
|
$ |
15 |
|
| Less: Imputed interest |
|
|
(26 |
) |
|
|
(3 |
) |
| Net present value of lease obligations |
|
$ |
277 |
|
|
$ |
12 |
|
| Net present value of lease obligations – current
portion |
|
|
125 |
|
|
|
3 |
|
| Net present value of lease obligations – non-current
portion |
|
$ |
152 |
|
|
$ |
9 |
|
Supplemental
cash flow and other information related to our leases were as follows (in thousands):
| |
|
December
31, |
|
| |
|
2025 |
|
|
2024 |
|
| Cash paid for amounts included in the measurement
of lease liabilities: |
|
|
|
|
|
|
| Operating
cash flow from operating leases |
|
$ |
147 |
|
|
$ |
159 |
|
| Operating cash flow from
finance leases |
|
$ |
1 |
|
|
$ |
1 |
|
| Financing cash flow from
finance leases |
|
$ |
3 |
|
|
$ |
2 |
|
| ROU assets obtained in exchange for lease obligations
for: |
|
|
|
|
|
|
|
|
| Operating liabilities |
|
$ |
- |
|
|
$ |
- |
|
| Finance liabilities |
|
$ |
11 |
|
|
$ |
15 |
|
|