Leases and Commitments

3 Months Ended

Mar. 31, 2024

Operating Leases — The Company leases office space in Atlanta, Georgia, which serves as its corporate headquarters, office space in Malta, which serves as its research and development facility, and vehicles in Malta that are considered operating lease arrangements under ASC 842 guidance. In addition. the Company contracts for month-to-month coworking arrangements in other office spaces in North Carolina, Denmark, Poland, and Rwanda to support its dispersed workforce. As of March 31, 2024, there were no minimum lease commitments related to month-to-month lease arrangements.

Initial lease terms are determined at commencement date, the date the Company takes possession of the property, and the commencement date is used to calculate straight-line expense for operating leases. Certain leases contain renewal options for varying periods, which are at the Company’s sole discretion. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s Operating lease right-of-use assets and Operating lease liabilities. The Company’s leases have remaining terms of 1 to 5 years. As the Company’s leases do not provide an implicit rate, the present value of future lease payments is determined using the Company’s incremental borrowing rate based on information available at the commencement date.


Lease term and discount rate	March 31, 2024
Weighted average remaining lease term	2.58 years
Weighted average discount rate	5.0	%

During the three months ended March 31, 2024, the Company did not terminate any operating leases.

Balance sheet information related to leases as of as of March 31, 2024 and December 31, 2023 was as follows:


	March 31, 2024		December 31, 2023
Operating lease right-of-use assets
Operating lease right-of-use assets	$	184,642	$	164,740

Operating lease liabilities
Short-term operating lease liabilities	$	69,727	$	81,236
Long-term operating lease liabilities	84,288		53,771
Total operating lease liabilities	$	154,015	$	135,007

Future maturities of ASC 842 lease liabilities as of March 31, 2024 are as follows:


Years Ending December 31,	Principal Payments		Imputed Interest Payments		Total Payments
2024	$	57,391	$	4,444	$	61,835
2025	57,386		3,170		60,556
2026	22,455		1,137		23,592
2027	8,556		607		9,163
2028	8,227		172		8,399
Total future maturities	$	154,015	$	9,530	$	163,545

Total lease expense, under ASC 842, was included in Selling, general, and administrative expenses in our consolidated statement of operations for the three months ended March 31, 2024 and 2023 as follows:


	For the three months ended March 31,
	2024		2023
Operating lease expense – fixed payments	$	39,877	$	83,034
Short term lease expense	11,936		21,935
Total lease expense	$	51,813	$	104,969

Supplemental cash flows information related to leases was as follow:


	For the three months ended March 31,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(41,741)	$	(66,546)

During the three months ended March 31, 2024, the Company did not incur variable lease expense.

Financial Liability Obligation — The Company’s financial liability totaled $0 and $162 thousand as of March 31, 2024 and December 31, 2023, respectively, for an executed agreement with a telecommunications company for acquiring mobile hardware. On March 3, 2023, the Company provided a 30-day termination notice to the telecommunications company which terminates the mobile hardware data service. Under the contract terms with the telecommunications company, upon termination of the data service the Company must pay the remaining financial liability during the final data service billing period. The remaining financial liability was resolved with a settlement and no further payment is due as of March 31, 2024.

Litigation — The Company is not currently involved with and does not know of any pending or threatening litigation against the Company or any of its officers or directors in connection with its business.