Note 10 - Leases

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

10. Leases

On July 1, 2023, the Company entered into a lease with Unico Properties LLC for office space in Seattle, Washington, that terminates in October 2028. Upon entering this lease, the Company recognized a right-of-use asset and lease liability of approximately $0.8 million on the balance sheet based upon the present value of the future base payments discounted at an 8% discount rate using the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment as the lease does not provide an implicit discount rate. The weighted average remaining term and discount rate as of December 31, 2023, was 4.83 years and 8%, respectively.

The following table presents the future operating lease payments and lease liability included on the consolidated balance sheet related to the Company’s operating lease as of December 31, 2023 (in thousands):

Year ended December 31,
2024	$	111
2025		243
2026		239
2027		230
2028		237
Total		1,060
Less: imputed interest		(234	)
Total lease liability		826
Less current portion		(46	)
Noncurrent lease liability	$	780

For the year ended December 31, 2023, six months ended December 31, 2022 and year ended June 30, 2022, our operating lease expense was approximately $97 thousand, $0 and $0, respectively, and is recognized in the statement of operations in general and administrative for the year ended December 31, 2023.

Asset Retirement Obligation

The Company has an asset retirement obligation ("ARO") associated with the facility it leased in Richland, Washington. This lease is included in the GT Medical APA and will be assigned upon the GT Medical Closing. As the lease and related leasehold assets are included in the GT Medical APA and will be assigned to GT Medical, this liability is no longer reported as an ARO in our consolidated financial statements for the period ended December 31, 2023 and 2022. However, the Company maintains the estimated liability in our consolidated financial statements related to hazardous waste removal. The estimated liability at December 31, 2023 and 2022 was $452 thousand and $442 thousand, respectively.