Note
8 – Leases
The
Company has operating leases for corporate offices, and office equipment. The leases have remaining lease terms of 1.1 to 2.1 years.
Lease
cost, as presented below, includes costs associated with leases for which right-of-use (“ROU”) assets have been recognized
as well as short-term leases.
The
components of total lease costs were as follows:
Schedule of Components of
Lease Cost
| | |
Three months ended September 30, 2026 | | |
Three months ended September 30, 2025 | |
| | |
(in thousands) | |
| Operating lease cost | |
$ | 95 | | |
$ | 88 | |
| Finance lease cost: | |
| | | |
| | |
| Amortization of right-of-use assets | |
| 2 | | |
| 1 | |
| Interest on lease liabilities | |
| 0 | | |
| 1 | |
| Total finance lease cost | |
| 2 | | |
| 2 | |
| Variable lease cost | |
| 18 | | |
| 24 | |
| Total lease cost | |
$ | 115 | | |
$ | 114 | |
| | |
Nine months ended September 30, 2026 | | |
Nine months ended September 30, 2025 | |
| | |
(in thousands) | |
| Operating lease cost | |
$ | 282 | | |
$ | 261 | |
| Finance lease cost: | |
| | | |
| | |
| Amortization of right-of-use assets | |
| 4 | | |
| 4 | |
| Interest on lease liabilities | |
| 1 | | |
| 1 | |
| Total finance lease cost | |
| 5 | | |
| 5 | |
| Variable lease cost | |
| 69 | | |
| 82 | |
| Total lease cost | |
$ | 356 | | |
$ | 348 | |
Supplemental
cash flow information related to leases was as follows:
Schedule of Supplemental
Cash Flow Information Related to Leases
| | |
Nine months ended September 30, 2026 | | |
Nine months ended September 30, 2025 | |
| | |
(in thousands) | |
| Cash paid for amounts included in the measurement of lease liabilities: | |
| | | |
| | |
| Operating cash flows from operating leases | |
$ | 336 | | |
$ | 325 | |
| Financing cash flows from finance leases | |
$ | 4 | | |
$ | 4 | |
Supplemental
balance sheet information related to leases was as follows:
Schedule of Supplemental
Balance Sheet Information Related to Leases
| | |
September 30, 2026 | | |
December 31, 2025 | |
| | |
(in thousands) | |
| Operating lease right-of-use assets | |
$ | 723 | | |
$ | 1,004 | |
| Finance lease right-of-use assets | |
$ | 13 | | |
$ | 17 | |
| | |
| | | |
| | |
| Current portion of operating lease liabilities | |
$ | 420 | | |
$ | 386 | |
| Operating lease liabilities, net of current portion | |
| 341 | | |
| 661 | |
| Total operating lease liabilities | |
$ | 761 | | |
$ | 1,047 | |
| | |
| | | |
| | |
| Current portion of finance lease liabilities | |
$ | 6 | | |
$ | 5 | |
| Finance lease liabilities, net of current portion | |
| 7 | | |
| 11 | |
| Total finance lease liabilities | |
$ | 13 | | |
$ | 16 | |
| | |
| | | |
| | |
| Weighted average remaining lease term | |
| | | |
| | |
| Operating leases | |
| 1.9 years | | |
| 2.6 years | |
| Finance leases | |
| 2.1 years | | |
| 2.8 years | |
| | |
| | | |
| | |
| Weighted average discount rate | |
| | | |
| | |
| Operating leases | |
| 8.0 | % | |
| 8.0 | % |
| Weighted average discount rate, Operating leases | |
| 8.0 | % | |
| 8.0 | % |
| | |
| | | |
| | |
| Finance leases | |
| 8.0 | % | |
| 8.0 | % |
| Weighted average discount rate, Finance leases | |
| 8.0 | % | |
| 8.0 | % |
As
of September 30, 2026, maturities of lease liabilities were as follows:
Schedule of Maturities of
Lease Liabilities
| | |
Operating Leases | | |
Finance Leases | |
| | |
(in thousands) | |
| Year ending December 31, | |
| | | |
| | |
| 2026 (remaining three months) | |
$ | 114 | | |
$ | 2 | |
| 2027 | |
| 450 | | |
| 7 | |
| 2028 | |
| 251 | | |
| 5 | |
| Total future minimum lease payments | |
| 815 | | |
| 14 | |
| Less imputed interest | |
| (54 | ) | |
| (1 | ) |
| Total | |
$ | 761 | | |
$ | 13 | |
|