Leases |
7. Leases The Company leases certain vehicles, seismic recording equipment, real property and office equipment under lease agreements. The Company evaluates each lease to determine its appropriate classification as an operating lease or finance lease for financial reporting purposes. The Company is the lessee in a lease contract when we obtain the right to control the asset. The majority of our operating leases are non-cancelable operating leases for office, shop and warehouse space in Midland, Plano, Houston, Oklahoma City and Calgary, Alberta. The components of lease cost (in thousands) for the years ended December 31, 2021 and 2020 were as follows: | | | | | | | | | Year Ended December 31, | | | 2021 | | 2020 | Finance lease cost | | | | | | | Amortization of right-of-use assets | | $ | 1,350 | | $ | 1,357 | Interest on lease liabilities | | | 4 | | | 46 | Total finance lease cost | | | 1,354 | | | 1,403 | | | | | | | | Operating lease cost | | | 1,338 | | | 1,511 | | | | | | | | Short-term lease cost | | | — | | | — | Total lease cost | | $ | 2,692 | | $ | 2,914 |
Supplemental cash flow information related to leases (in thousands) for the years ended December 31, 2021 and 2020 was as follows: | | | | | | | | | Year Ended December 31, | | | 2021 | | 2020 | Cash paid for amounts included in the measurement of lease liabilities | | | | | | | Operating cash flows from operating leases | | $ | (1,375) | | $ | (1,534) | Operating cash flows from finance leases | | $ | (5) | | $ | (51) | Financing cash flows from finance leases | | $ | (55) | | $ | (2,326) | Right-of-use assets obtained in exchange for lease obligations | | | | | | | Operating leases | | $ | 1 | | $ | 64 | Finance leases | | $ | — | | $ | — |
Supplemental balance sheet information related to leases (in thousands) as of December 31, 2021 and 2020 was as follows: | | | | | | | | | December 31, | | | 2021 | | 2020 | Operating leases | | | | | | | Operating lease right-of-use assets | | $ | 4,435 | | $ | 5,494 | | | | | | | | Operating lease liabilities - current | | $ | 961 | | $ | 1,109 | Operating lease liabilities - long-term | | | 3,942 | | | 4,899 | Total operating lease liabilities | | $ | 4,903 | | $ | 6,008 | | | | | | | | Finance leases | | | | | | | Property and equipment, at cost | | $ | 8,663 | | $ | 8,663 | Accumulated depreciation | | | (6,293) | | | (4,624) | Property and equipment, net | | $ | 2,370 | | $ | 4,039 | | | | | | | | Finance lease liabilities - current | | $ | 37 | | $ | 54 | Finance lease liabilities - long-term | | | 8 | | | 44 | Total finance lease liabilities | | $ | 45 | | $ | 98 | | | | | | | | Weighted average remaining lease term | | | | | | | Operating leases | | | 4.8 years | | | 5.6 years | Finance leases | | | 0.8 years | | | 1.6 years | | | | | | | | Weighted average discount rate | | | | | | | Operating leases | | | 5.04% | | | 5.04% | Finance leases | | | 5.04% | | | 5.00% |
Maturities of lease liabilities (in thousands) at December 31, 2021 are as follows: | | | | | | | | | Operating Leases | | Finance Leases | January 2022 - December 2022 | | $ | 1,185 | | $ | 39 | January 2023 - December 2023 | | | 1,173 | | | 8 | January 2024 - December 2024 | | | 1,179 | | | — | January 2025 - December 2025 | | | 880 | | | — | January 2026 - December 2026 | | | 897 | | | — | Thereafter | | | 225 | | | — | Total payments under lease agreements | | | 5,539 | | | 47 | | | | | | | | Less imputed interest | | | (636) | | | (2) | | | | | | | | Total lease liabilities | | $ | 4,903 | | $ | 45 |
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