|
NOTE
4
LEASES
The
components of lease cost for the Company’s leases were as follows (in thousands):
SCHEDULE OF COMPONENTS OF LEASE COST
| |
|
2025 |
|
|
2024 |
|
| |
|
Twelve
Months Ended December 31, |
|
| |
|
2025 |
|
|
2024 |
|
| |
|
|
|
|
|
|
| Operating Leases: |
|
|
|
|
|
|
|
|
| Lease cost |
|
$ |
483 |
|
|
$ |
541 |
|
| |
|
|
|
|
|
|
|
|
| Finance Leases: |
|
|
|
|
|
|
|
|
| Amortization of ROU assets |
|
|
271 |
|
|
|
261 |
|
| Interest on lease liability |
|
|
97 |
|
|
|
81 |
|
| Finance lease |
|
|
368 |
|
|
|
342 |
|
| |
|
|
|
|
|
|
|
|
| Short-term lease rent expense |
|
|
9 |
|
|
|
6 |
|
| |
|
|
|
|
|
|
|
|
| Total lease cost |
|
$ |
860 |
|
|
$ |
889 |
|
The
weighted average remaining lease term and the weighted average discount rate for operating and finance leases as of December 31, 2025,
were:
SCHEDULE OF WEIGHTED AVERAGE LEASE
| |
|
Operating
Leases |
|
|
Finance
Leases |
|
| Weighted average remaining lease
terms (years) |
|
|
3.7 |
|
|
|
3.1 |
|
| |
|
|
|
|
|
|
|
|
| Weighted average discount rate |
|
|
7.8 |
% |
|
|
9.6 |
% |
The
weighted average remaining lease term and the weighted average discount rate for operating and finance leases as of December 31, 2024,
were:
| |
|
Operating
Leases |
|
|
Finance
Leases |
|
| Weighted average remaining lease
terms (years) |
|
|
4.7 |
|
|
|
3.8 |
|
| |
|
|
|
|
|
|
|
|
| Weighted average discount rate |
|
|
7.7 |
% |
|
|
9.2 |
% |
The
following table reconciles the undiscounted cash flows for the operating and finance leases as of December 31, 2025, 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 |
|
| 2026 |
|
$ |
530 |
|
|
$ |
389 |
|
| 2027 |
|
|
467 |
|
|
|
372 |
|
| 2028 |
|
|
355 |
|
|
|
198 |
|
| 2029 |
|
|
349 |
|
|
|
118 |
|
| 2030 |
|
|
77 |
|
|
|
4 |
|
| Total undiscounted lease payments |
|
|
1,778 |
|
|
|
1,081 |
|
| Less: Imputed interest |
|
|
(260 |
) |
|
|
(149 |
) |
| Present value of lease payments |
|
$ |
1,518 |
|
|
$ |
932 |
|
| Current portion of operating lease
obligations |
|
$ |
416 |
|
|
$ |
N/A
|
|
| Long-term operating lease obligations, less
current portion |
|
$ |
1,102 |
|
|
$ |
N/A
|
|
| Current portion of finance lease obligations |
|
$ |
N/A
|
|
|
$ |
313 |
|
| Long-term finance lease obligations, less current
portion |
|
$ |
N/A
|
|
|
$ |
619 |
|
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
| |
|
2025 |
|
|
2024 |
|
| |
|
Twelve
Months Ended December 31, |
|
| |
|
2025 |
|
|
2024 |
|
| Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
| Operating cash
flow from operating leases |
|
$ |
486 |
|
|
$ |
526 |
|
| Operating cash flow from
finance leases |
|
$ |
97 |
|
|
$ |
81 |
|
| Financing cash flow from
finance leases |
|
$ |
308 |
|
|
$ |
291 |
|
| |
|
|
|
|
|
|
|
|
| ROU assets obtained in exchange for lease obligations
for: |
|
|
|
|
|
|
|
|
| Finance liabilities |
|
$ |
464 |
|
|
$ |
—
|
|
| Operating liabilities |
|
$ |
90 |
|
|
$ |
497 |
|
| |
|
|
|
|
|
|
|
|
| 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 assets in 2024 as noted above 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).
|