Note 12 - Leases

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Lessor, Operating Leases [Text Block]

Note 12. Leases

Office Leases

We have long-term operating leases for office, industrial and laboratory space in Westminster, California, Oak Ridge, Tennessee, and Alberta, Canada. Payments made under operating leases are charged to the Consolidated Statement of Operations and Comprehensive Loss on a straight-line basis over the term of the operating lease agreement. Short-term leases less than one-year are not included in our analysis. For the three months ended March 31, 2024, rental expense was $88,000; for the three months ended March 31, 2023, rental expense was $83,000.  The lease of our Westminster facility expires  August 2024. Management intends to extend this lease for four years. The four-year lease extension added $394,000 to our right of use and lease liability as of  December 31, 2023.  The lease of our Canadian facility is less than one year. None of our leases have additional terms related to the payments or mechanics of the lease. The leases have no additional payment terms such as common area maintenance payments, tax sharing payments or other allocable expenses. Likewise, the leases do not contain other terms and conditions of use, such as variable lease payments, residual value guaranties or other restrictive financial terms. Since there is no explicit interest rate in our leases, management used its incremental borrowing rate, which is estimated to be 18% to determine lease liability.  As of March 31, 2024, the weighted average remaining lease term for our operating leases was seven years.

As of December 31, 2023, our weighted average remaining lease term is seven years and the total remaining operating lease payments is $2,042,000. Our minimum lease payments over the next five years are as follows:

	BioLargo
Year ending	Corp / ONM		BLEST		Total
December 31, 2024		122,000		154,000		276,000
December 31, 2025		125,000		157,000		282,000
December 31, 2026		129,000		160,000		289,000
December 31, 2027		133,000		163,000		296,000
December 31, 2028		79,000		166,000		245,000
Thereafter		—		654,000		654,000
Total minimum lease payments	$	588,000	$	1,454,000	$	2,042,000
Less imputed interest						(933,000	)
Total operating lease liability					$	1,109,000