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Note 10 - Leases

12 Months Ended

Dec. 31, 2020

Leases of Lessee Disclosure [Text Block]

(10)

Leases

We lease printing, computer, other equipment and office space in the United States and Canada. The leases remaining terms as of December 31, 2020 range from less than one year to 4.7 years.

Certain equipment and office lease agreements include provisions for periodic adjustments to rates and charges. The rates and charges are adjusted based on actual usage or actual costs for internet, common area maintenance, taxes or insurance, as determined by the lessor and are considered variable lease costs.

The components of lease expense for the years ended December 31, 2020 and 2019 included (in thousands):

	2020		2019
Operating leases	$	600	$	781
Finance leases:
Asset amortization		355		252
Interest on lease liabilities		37		39
Variable lease cost		62		86
Short-term lease cost		42		42
Total net lease cost	$	1,096	$	1,200

In 2020, we adjusted the useful life of the operating right of use assts associated with our Atlanta, Georgia and Markham, Ontario office leases based on the expectation that we will vacate the office space before the end of the lease term. We recorded rent expense in connection with our operating leases of $779,000 in 2018.

Supplemental balance sheet information related to leases (in thousands):

	December 31, 2020		December 31, 2019
Operating leases:
Operating ROU assets	$	1,308	$	1,628

Current operating lease liabilities		461		524
Noncurrent operating lease liabilities		896		1,139
Total operating lease liabilities	$	1,357	$	1,663

	December 31, 2020			December 31, 2019
Finance leases:
Furniture and equipment	$	1,014		$	802
Computer Equipment		662			511
Computer Software		207			207
Property and equipment under finance lease, gross		1,883			1,520
Less accumulated amortization		(605	)		(734	)
Property and equipment under finance lease, net	$	1,278		$	786

Current obligations of finance leases	$	493		$	227
Noncurrent obligations of finance leases		778			559
Total finance lease liabilities	$	1,271		$	786

Weighted average remaining lease term (in years):
Operating leases		3.68			4.17
Finance leases		2.69			3.56

Weighted average discount rate:
Operating leases		4.40	%		4.81	%
Finance leases		3.38	%		4.60	%

Supplemental cash flow and other information related to leases were as follows (in thousands):

	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	596	$	789
Operating cash flows from finance leases		36		38
Financing cash flows from finance leases		332		229

ROU assets obtained in exchange for operating lease liabilities		276		16
ROU assets obtained in exchange for finance lease liabilities		817		192

Undiscounted payments under non-cancelable finance and operating leases at December 31, 2020 were as follows (in thousands):

	Finance Leases			Operating Leases
2021	$	527		$	509
2022		481			322
2023		305			319
2024		13			203
2025		--			118
Thereafter		--			--
Total minimum lease payments		1,326			1,471
Less: Amount representing interest		(55	)		(114	)
Present value of minimum lease payments		1,271			1,357
Current portion		(493	)		(461	)
Lease obligations, net of current portion	$	778		$	896

In addition to the above, we have an operating lease for office space commencing February 2021 which requires monthly base rent payments of $14,288 through January 2024.