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NOTE 12. OPERATING LEASE OBLIGATIONS
The Company leases 3,681 square feet of office space in Scottsdale, Arizona. In September 2022, the Company amended the lease to extend the lease term for an additional 25 months at an annual rate of approximately $0.1 million. The amended lease will expire on January 31, 2025.
The Company recorded rent expense as follows:
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Three-Month Periods Ended June 30, |
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Six-Month Periods Ended June 30, |
($’s in thousands) |
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2023 |
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2022 |
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2023 |
|
2022 |
Operating lease cost |
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$ |
24 |
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$ |
27 |
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$ |
48 |
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$ |
53 |
Variable lease cost |
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1 |
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1 |
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|
2 |
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|
2 |
Total lease cost |
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$ |
25 |
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$ |
28 |
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$ |
50 |
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$ |
55 |
The following table summarizes quantitative information about the Company’s operating leases:
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Three-Month Periods Ended June 30, |
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Six-Month Periods Ended June 30, |
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($’s in thousands) |
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2023 |
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2022 |
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2023 |
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2022 |
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Cash paid for amounts included in the measurement of lease liabilities |
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$ |
25 |
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$ |
25 |
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$ |
42 |
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$ |
50 |
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Weighted-average remaining lease term - operating leases |
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1.6 |
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0.5 |
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1.6 |
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0.5 |
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Weighted-average discount rate - operating leases |
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6.25 |
% |
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4.0 |
% |
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6.25 |
% |
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4.0 |
% |
As of June 30, 2023, future minimum lease payments under lease agreements associated with the Company’s operations were as follows:
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$’s in thousands |
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Remainder of 2023 |
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$ |
50 |
2024 |
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102 |
2025 |
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|
9 |
Total lease payments |
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161 |
Less: present value discount |
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(7) |
Total operating lease liabilities |
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$ |
154 |
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