Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.23.1
LEASES
3 Months Ended
Mar. 31, 2023
Leases  
LEASES

NOTE 7. LEASES

 

Our adoption of ASU 2016-02, Leases (Topic 842), and subsequent ASUs related to Topic 842, requires us to recognize substantially all leases on the balance sheet as a right-of-use (ROU) asset and a corresponding lease liability. The guidance also requires additional disclosures as detailed below. We adopted this standard on the effective date of January 1, 2019 and used this effective date as the date of initial application. Under this application method, we were not required to restate prior period financial information or provide Topic 842 disclosures for prior periods. We elected the ‘package of practical expedients,’ which permitted us to not reassess our prior conclusions related to lease identification, lease classification, and initial direct costs, and we did not elect the use of hindsight.

 

Lease ROU assets and liabilities are recognized at commencement date of the lease, based on the present value of lease payments over the lease term. The lease ROU asset also includes any lease payments made and excludes any lease incentives. When readily determinable, we use the implicit rate in determining the present value of lease payments. When leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date, including the lease term.

 

 

Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for short-term leases is recognized on a straight-line basis over the lease term. As of March 31, 2023, we did not have any short-term leases.

 

The tables below present financial information associated with our lease.

 

   

Balance Sheet Classification

 

March 31, 2023

   

December 31, 2022

 
                 
Right-of-use assets   Other long-term assets     21,706       23,086  
Current lease liabilities   Other current liabilities     5,656       5,482  
Non-current lease liabilities   Other long-term liabilities     16,325       17,714  

 

As of March 31, 2023, the maturities of our lease liability are as follows:

 

         
2023   $ 3,808  
2024     5,714  
2025     6,472  
2026     5,987  
Total   $ 21,981  
Less imputed interest     (275 )
Present value of lease liabilities   $ 21,706