Note 11 - Leases

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

11. Leases

The Company is obligated under various non-cancelable operating leases primarily for office space. The initial terms of the leases expire on various dates through 2030. We determine if an arrangement is a lease at inception.

The components of the Company’s operating lease expense are reflected in the consolidated statements of operations as follows:

	Year Ended December 31,
	2023		2022
	(in thousands)
Lease liability cost	$	6,978	$	5,945
Short-term lease expenses (1)		777		1,760
Variable lease cost not included in the lease liability (2)		477		261
Total lease cost	$	8,232	$	7,966

⁽¹⁾ Short-term lease expenses include rent expenses from leases of 12 months or less on the transition date or lease commencement.

⁽²⁾ Variable lease cost includes common area maintenance, property taxes, and fluctuations in rent due to a change in an index or rate.

Our lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. We elected to combine fixed payments for non-lease components, for all classes of underlying assets, with our lease payments and account for them together as a single lease component which increases the amount of our lease assets and liabilities.

During the year ended  December 31, 2023, ROU assets obtained in exchange for new operating lease liabilities amounted to $4.3 million.

AvePoint, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (continued)

Other information related to operating leases is as follows:

	Year Ended December 31,
	2023		2022
	(in thousands)
Cash paid for amounts included in the measurement of the lease liability:
Operating cash flows from operating leases	$	7,190	$	5,626

As of  December 31, 2023 and 2022, our operating leases had weighted average remaining lease terms of 3.8 years and 4.4 years, respectively, and weighted average discount rates of 5.6% and 5.1%, respectively.

The maturity schedule of the operating lease liabilities as of  December 31, 2023, is as follows:

Year Ending December 31:
	(in thousands)
2024	$	5,998
2025		4,073
2026		2,513
2027		1,721
2028		789
Thereafter		1,212
Total future lease payments		16,306
Less: Present value adjustment		(1,586	)
Present value of future lease payments (1)	$	14,720

⁽¹⁾ Includes the current portion of operating lease liabilities of $5.3 million, which is reflected in accrued expenses and other liabilities in the consolidated balance sheets.

As of December 31, 2023, letters of credit have been issued in the amount of $1.0 million as security for operating leases. The letters of credit are secured by certificates of deposit.

During the year ended December 31, 2021, total rent expenses amounted to $6.4 million.

The future minimum rental payments under ASC 840 for all long-term non-cancelable property leases as of  December 31, 2021, were as follows:

Year Ending December 31:
	(in thousands)
2022	$	5,680
2023		3,808
2024		2,428
2025		1,840
2026		1,438
Thereafter		2,960
	$	18,154

AvePoint, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (continued)