Quarterly report pursuant to Section 13 or 15(d)

OPERATING LEASES

v3.23.2
OPERATING LEASES
 6 Months Ended
Jun. 30, 2023
Operating Leases  
OPERATING LEASES

5. OPERATING LEASES

 

On January 3, 2022, the Company terminated the lease agreements relating to our office and warehouse leases in American Fork, Utah. In accordance with ASC 842, Leases, the Company derecognized the right-of-use assets of $543 and the corresponding lease liabilities of $521.

 

On April 26, 2022, the Company entered into an office space sub-lease agreement in Lehi, Utah (the “Lehi lease”). The agreement required us to pay $12 per month for an initial term of eighteen months, which increased by 3% per annum after twelve months. In accordance with ASC 842, the Company recognized a right-of-use asset and the related lease liability of $212.

 

On June 13, 2023, the Company derecognized the Lehi lease as part of the sale of SaaS assets to SW Sales. As a result of the sale, the Company has eliminated any lease-related information related to the SaaS business as part of its presentation of continuing operations. See Note 14 for Subsequent Events.

 

The components of lease expense and supplemental cash flow information related to leases for the period are as follows:

 

    2023     2022  
    Six Months Ended June 30,  
    2023     2022  
Lease cost                
Operating lease cost (included in general and administrative expenses in the Company’s statement of operations)   $ 170     $ 192  
                 
Other information                
Cash paid for amounts included in the measurement of lease liabilities   $ 113     $ 221  
Weighted average remaining lease term – operating leases (in years)     3.92       4.92  
Weighted average discount rate – operating leases     4.0 %     4.0 %

 

 

    June 30, 2023     December 31, 2022  
Operating leases                
Right-of-use assets   $ 1,220     $ 1,354  
                 
Short-term operating lease liabilities   $ 482     $ 355  
Long-term operating lease liabilities     1,379       1,581  
Total operating lease liabilities   $ 1,861     $ 1,936  

 

 

Year ending   Operating Leases  
2023 remaining   $ 346  
2024     472  
2025     484  
2026     496  
2027 and thereafter     209  
Total lease payments     2,007  
Less: Imputed interest/present value discount     (146 )
Present value of lease liabilities   $ 1,861