Leases

12 Months Ended

Dec. 31, 2021

Leases

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