XML 20 R10.htm IDEA: XBRL DOCUMENT v3.22.2
LEASES
6 Months Ended
Jun. 30, 2022
Leases  
LEASES

NOTE 4—LEASES

 

OmniMetrix leases office space and office equipment under operating lease agreements. The office lease has an expiration date of September 30, 2025. The office equipment lease was entered into in April 2019 and has a sixty-month term. Operating lease payments for the six months ended June 30, 2022 and 2021 were $62,000 and $60,000, respectively. Operating lease payments for the three months ended June 30, 2022 and 2021 were $32,000 and $30,000, respectively. The future minimum lease payments on non-cancellable operating leases as of June 30, 2022 using a discount rate of 4.5% are $390,000. The 4.5% discount rate used is the incremental borrowing rate which, as defined in ASC 842, is the rate of interest that a lessee would have to pay to borrow, on a collateralized basis, over a similar term and in a similar economic environment, an amount equal to the lease payments.

 

Supplemental cash flow information related to leases consisted of the following (in thousands):

 

   June 30, 
   2022   2021 
Cash paid for operating lease liabilities  $62   $60 

 

Supplemental balance sheet information related to leases consisted of the following:

 

    2022  
Weighted average remaining lease terms for operating leases     3.23 years  

 

The table below reconciles the undiscounted future minimum lease payments under non-cancelable lease agreements having initial terms of more than one year to the total operating lease liabilities recognized on the unaudited condensed consolidated balance sheet as of June 30, 2022 (in thousands):

 

  

Twelve-month

period ended

June 30,

 
2023  $126 
2024   129 
2025   131 
2026   33 
Total undiscounted cash flows   419 
Less: Imputed interest   (29)
Present value of operating lease liabilities (a)  $390 

 

  (a) Includes current portion of $111,000 for operating leases.

 

On July 6, 2021, the Company entered into an agreement with King Industrial Realty, Inc., to sublease from the Company 1,900 square feet of office space of the Company’s 21,000 square feet of office and production space in the Hamilton Mill Business Park located in Buford, Georgia for a monthly sublease payment of $2,375 which includes the base rent plus a pro-rata share of utilities, property taxes and insurance. Fifty percent of any excess rent received above the per square foot amount that the Company pays will be remitted to the Company’s landlord less the allocation of any shared expenses and leasehold improvements specific to the sublease. The Company invested $7,000 on leasehold improvements related to the sublease. Due to the offset of the capital expenditures, the Company has not had any net rent due to its landlord to date related to the sublease. The estimated amount the Company expects to remit to the landlord subsequent to the first twelve months is $6,700 per year. The sublease commenced on October 1, 2021 and will run through September 30, 2025 which is the end of the Company’s lease term with its landlord.

 

 

    Twelve-month period ended June 30,  
2023   $ 26  
2024     26  
2025     26  
2026     7  
Total undiscounted cash flows   $ 85