Note 9 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Legal Matters and Contingencies [Text Block]

9. COMMITMENTS AND CONTINGENCIES

Leases

We have noncancelable operating leases for offices and data centers expiring at various dates through February 2027. These operating leases are included in other long-term assets on the Company's September 30, 2023 and December 31, 2022 Consolidated Balance Sheets and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are included in other current liabilities and long-term lease obligation on the Company's September 30, 2023 and December 31, 2022 Consolidated Balance Sheets. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments.

Supplemental Information–Leases

Supplemental information related to our right-of-use assets and related lease liabilities is as follows:

	September 30, 2023			December 31, 2022
Right-of-use asset, net and lease liabilities (in thousands)	$	2,342		$	3,373
Weighted average remaining lease term (years)		2.7			3.2
Weighted average discount rate		3.4	%		3.4	%

For the nine-months ended September 30, 2023 and 2022, cash paid for operating leases included in operating cash flows was $1,005,000 and $994,000, respectively.

Maturities of our operating lease liabilities as of September 30, 2023 is as follows:

	Operating Leases
	(in thousands)
2023	$	362
2024		1,017
2025		635
2026		523
2027		68
Total lease liabilities	$	2,605

Lease expense for the three and nine months ended September 30, 2023 and 2022 consisted of the following:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2023		2022		2023		2022
Cost of Revenue	$	187	$	183	$	557	$	595
General and Administrative		116		105		339		259
Development		28		47		109		140
Total	$	331	$	335	$	1,005	$	994

Legal Matters

There are no pending or threatened legal proceedings. However, in the ordinary course of business, from time to time we may be involved in various pending or threatened legal actions. The litigation process is inherently uncertain, and it is possible that the resolution of such matters might have a material adverse effect upon our financial condition and/or results of operations. We accrue for unpaid legal fees for services performed to date.