Note 13 - Leases |
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Lessee, Operating Leases [Text Block] |
13. Leases
We lease datacenters, corporate offices and fiber-optic cables under operating leases. The Company does
not have any leases classified as finance leases.
Our leases have remaining lease terms of
year to
years, some of which
may include options to extend the leases for up to
years, and some of which
may include options to terminate the leases within
year.
The components of lease expense were as follows (Dollar amounts in thousands of U.S. dollars):
Lease Cost is presented in general and administrative expenses and network expenses within our consolidated statements of operations and comprehensive income.
Information related to leases was as follows (Dollar amounts in thousands of U.S. dollars):
Maturity of lease liability as of
June 30, 2020 (Dollar amounts in thousands of U.S. dollars):
Operating lease payments include payments under the non-cancellable term and approximately
$0.6 million related to options to extend lease terms that are reasonably certain of being exercised.
As of
June 30, 2020,
we have entered into lease agreements for total payments of$1.1 million that have not yet commenced, and therefore are not included in the lease liability.
In
March 2020, the Company modified a corporate office lease to defer its
April 2020 rent payment to be paid later in
four equal installments from
September to
December 2020. The modification resulted in an increase to the right of use operating lease asset and right of use operating lease liability of
$0.3 million and
$0.6 million, respectively, which also included the foreign exchange re-measurement of the right of use asset at the date of modification. Foreign exchange revaluation on both the right of use asset and liability is presented in general and administrative expenses within our consolidated statements of operations and comprehensive income.
The Company has elected to use the single exchange rate approach when accounting for lease modifications. Under the single exchange rate approach, the entire right of use asset is revalued at the date of modification in the Company’s functional currency provided the re-measurement is
not considered a separate contract or if the re-measurement is related to change the lease term or assessment of a lessee option to purchase the underlying asset being exercised.
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