Quarterly report pursuant to Section 13 or 15(d)

OPERATING LEASE OBLIGATIONS

v3.23.2
OPERATING LEASE OBLIGATIONS
6 Months Ended
Jun. 30, 2023
OPERATING LEASE OBLIGATIONS  
OPERATING LEASE OBLIGATIONS

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:

    

Three-Month Periods Ended June 30,

Six-Month Periods Ended June 30,

($’s in thousands)

2023

    

2022

    

2023

    

2022

Operating lease cost

$

24

$

27

$

48

$

53

Variable lease cost

 

1

1

2

2

Total lease cost

$

25

$

28

$

50

$

55

The following table summarizes quantitative information about the Company’s operating leases:

    

Three-Month Periods Ended June 30,

Six-Month Periods Ended June 30,

($’s in thousands)

    

2023

    

2022

    

2023

    

2022

Cash paid for amounts included in the measurement of lease liabilities

$

25

$

25

$

42

$

50

Weighted-average remaining lease term - operating leases

 

1.6

 

0.5

 

1.6

 

0.5

Weighted-average discount rate - operating leases

 

6.25

%  

 

4.0

%  

 

6.25

%  

 

4.0

%

As of June 30, 2023, future minimum lease payments under lease agreements associated with the Company’s operations were as follows:

$’s in thousands

    

    

Remainder of 2023

$

50

2024

 

102

2025

 

9

Total lease payments

 

161

Less: present value discount

 

(7)

Total operating lease liabilities

$

154