LEASE LIABILITIES |
9 Months Ended |
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Sep. 30, 2024 | |
Lease Liabilities | |
LEASE LIABILITIES | NOTE 7 – LEASE LIABILITIES
Operating Leases
Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Generally, the implicit rate of interest (“discount rate”) in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The operating lease ROU asset includes any lease payments made and excludes lease incentives.
As of September 30, 2024, the Company has four operating leases with average monthly payments of approximately $66 per month through October 2030.
During the nine months ended September 30, 2024 and 2023, the Company reflected combined amortization of the right of use assets of $498 and $413, respectively, related to the leases, resulting in a combined net asset balance of $1,930 and $2,428 as of September 30, 2024 and December 31, 2023, respectively.
The operating lease liability at December 31, 2023 was $2,519. During the nine months ended September 30, 2024 and 2023, the Company made combined aggregate payments of $480 and $431, respectively, towards the lease liabilities resulting in a combined lease liability of $2,039 as of September 30, 2024.
Other Leases
In November 2019, the Company entered into a short-term lease agreement for one of its office facilities, which was subsequently extended until December 2022 and is currently on a month-to-month basis. Rent expense was $27 during the nine months ended September 30, 2024 and 2023, respectively.
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