Note 6 - Leases

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note 6 — Leases

Our leased assets consist of office space and the Rio Grande site lease.  On July 12, 2023, Rio Grande delivered the effective date notice to the Brownsville Navigation District and commenced the Rio Grande site lease.

Operating lease right-of-use assets are as follows (in thousands):

	September 30,		December 31,
	2023		2022
Office leases	$	14,263	$	1,474
Land lease		157,883		—
Total operating lease right-of-use assets, net	$	172,146	$	1,474

Operating lease liabilities are as follows (in thousands):

	September 30,		December 31,
	2023		2022
Office leases	$	856	$	1,093
Land lease		2,523		—
Total current lease liabilities	$	3,379	$	1,093
Non-current office leases		13,782		465
Non-current land leases		132,556		—
Total lease liabilities	$	149,717	$	1,558

Operating lease expense is as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Office leases	$	676	$	230	$	1,286	$	608
Land lease		1,880		—		1,880		—
Total operating lease expense		2,556		230		3,166		608
Short-term lease expense		26		69		79		200
Total lease expense	$	2,582	$	299	$	3,245	$	808

Maturity of operating lease liabilities as of September 30, 2023 are as follows (in thousands, except lease term and discount rate):

2023 (remaining)	$	2,166
2024		8,022
2025		7,609
2026		9,522
2027		9,565
Thereafter		208,851
Total undiscounted lease payments		245,735
Discount to present value		(96,018	)
Present value of lease liabilities	$	149,717
Weighted average remaining lease term - years		27.9
Weighted average discount rate - percent		4.0

Other information related to our operating leases is as follows (in thousands):

	Nine Months Ended September 30,
	2023		2022
Cash paid for amounts included in the measurement of operating lease liabilities:
Cash flows from operating activities	$	968	$	684
Noncash right-of-use assets recorded for operating lease liabilities:
In exchange for new operating lease liabilities during the period	$	147,829	$	1,332