|
NOTE
4
LEASES
The
components of lease cost for the Company’s leases were as follows (in thousands):
SCHEDULE
OF COMPONENTS OF LEASE COST
| |
|
2024 |
|
|
2023 |
|
| |
|
Twelve
Months Ended December 31, |
|
| |
|
2024 |
|
|
2023 |
|
| |
|
|
|
|
|
|
| Operating Leases: |
|
|
|
|
|
|
|
|
| Lease cost |
|
$ |
541 |
|
|
$ |
612 |
|
| |
|
|
|
|
|
|
|
|
| Finance Leases: |
|
|
|
|
|
|
|
|
| Amortization of ROU assets |
|
|
261 |
|
|
|
163 |
|
| Interest on lease liability |
|
|
81 |
|
|
|
33 |
|
| Finance lease |
|
|
342 |
|
|
|
196 |
|
| |
|
|
|
|
|
|
|
|
| Short-term lease rent expense |
|
|
6 |
|
|
|
2 |
|
| |
|
|
|
|
|
|
|
|
| Total lease cost |
|
$ |
889 |
|
|
$ |
810 |
|
The
weighted average remaining lease term and the weighted average discount rate for operating and finance leases as of December 31, 2024,
were:
SCHEDULE
OF WEIGHTED AVERAGE LEASE
| |
|
Operating Leases |
|
|
Finance Leases |
|
| Weighted average remaining lease
terms (years) |
|
|
4.7 |
|
|
|
3.8 |
|
| |
|
|
|
|
|
|
|
|
| Weighted average discount rate |
|
|
7.7 |
% |
|
|
9.2 |
% |
The
weighted average remaining lease term and the weighted average discount rate for operating and finance leases as of December 31, 2023,
were:
| |
|
Operating Leases |
|
|
Finance Leases |
|
| Weighted average remaining lease
terms (years) |
|
|
5.6 |
|
|
|
4.5 |
|
| |
|
|
|
|
|
|
|
|
| Weighted average discount rate |
|
|
7.5 |
% |
|
|
8.7 |
% |
The
following table reconciles the undiscounted cash flows for the operating and finance leases as of December 31, 2024, to the operating
and finance lease liabilities recorded on the balance sheet (in thousands):
SCHEDULE
OF OPERATING AND FINANCE LEASE LIABILITY MATURITY
| |
|
Operating Leases |
|
|
Finance Leases |
|
| 2025 |
|
$ |
486 |
|
|
$ |
345 |
|
| 2026 |
|
|
479 |
|
|
|
191 |
|
| 2027 |
|
|
447 |
|
|
|
157 |
|
| 2028 |
|
|
343 |
|
|
|
134 |
|
| 2029 |
|
|
334 |
|
|
|
102 |
|
| 2030
and thereafter |
|
|
73 |
|
|
|
— |
|
| Total undiscounted lease
payments |
|
|
2,162 |
|
|
|
929 |
|
| Less:
Imputed interest |
|
|
(390 |
) |
|
|
(153 |
) |
| Present
value of lease payments |
|
$ |
1,772 |
|
|
$ |
776 |
|
| |
|
|
|
|
|
|
|
|
| Current portion of operating
lease obligations |
|
$ |
345 |
|
|
$ |
— |
|
| Long-term operating lease
obligations, less current portion |
|
$ |
1,427 |
|
|
$ |
— |
|
| Current portion of finance
lease obligations |
|
$ |
— |
|
|
$ |
285 |
|
| Long-term finance lease
obligations, less current portion |
|
$ |
— |
|
|
$ |
491 |
|
Supplemental
cash flow and other information related to our leases were as follows (in thousands):
SCHEDULE
OF SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION RELATED TO LEASES
| |
|
2024 |
|
|
2023 |
|
| |
|
Twelve Months Ended December 31, |
|
| |
|
2024 |
|
|
2023 |
|
| Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|
|
| Operating cash flow from operating leases |
|
$ |
526 |
|
|
$ |
582 |
|
| Operating cash flow from finance leases |
|
$ |
81 |
|
|
$ |
33 |
|
| Financing cash flow from finance leases |
|
$ |
291 |
|
|
$ |
189 |
|
| |
|
|
|
|
|
|
|
|
| ROU assets obtained in exchange for lease obligations for: |
|
|
|
|
|
|
|
|
| Finance liabilities |
|
$ |
— |
|
|
$ |
786 |
|
| Operating liabilities |
|
$ |
497 |
|
|
$ |
466 |
|
| |
|
|
|
|
|
|
|
|
| Reduction to ROU assets resulting from purchase of underlying asset: |
|
|
|
|
|
|
|
|
| Operating liabilities |
|
$ |
404 |
|
|
$ |
— |
|
| Reduction to ROU assets resulting from purchase
of underlying asset, Operating liabilities |
|
$ |
404 |
|
|
$ |
— |
|
The
reduction in ROU asset resulted from the purchase by the Company in July 2024 of the property where its EWOC facility conducts its waste
treatment operations. The Company previously leased this property which was included within its operating leases (see “Note 9 –
Long Term Debt” for a discussion of the purchase of this property by the Company).
|