Quarterly report pursuant to Section 13 or 15(d)

Note 9 - Lease Liability

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Note 9 - Lease Liability
3 Months Ended
Mar. 31, 2023
Notes to Financial Statements  
Lease liability
9.
Lease liability

Aptose leases office space in San Diego, California and Toronto, Canada. The lease for the San Diego office space was scheduled to expire on March 31, 2023. On November 4, 2022, this lease was extended through May 31, 2026 (the "Third Amendment"). Management has determined that the Third Amendment represents a lease modification, as defined by ASC 842, Leases, does not meet the requirements for accounting as a separate contract and continues to meet the definition of an operating lease. Accordingly, the Company has accounted for the Third Amendment prospectively, via remeasurements, on the Modification Date, to the lease liability and corresponding right-of-use asset. Aptose previously leased lab space in San Diego, which we exited prior to the expiration of the lease on February 28, 2023. The costs incurred in exiting this laboratory space were not material. We lease office space in Toronto, Ontario, Canada, with this lease previously scheduled to expire on June 30, 2023. This lease was extended for one year on February 23, 2023, with this extension expiring on June 30, 2024. The Company has not included any extension periods in calculating its right-to-use assets and lease liabilities. The Company also enters into leases for small office equipment.

Minimum payments, undiscounted, under our operating leases are as follows:

 

Years ending December 31,

 

 

 

2023

 

$

277

 

2024

 

 

459

 

2025

 

 

462

 

2026

 

 

197

 

Total

 

$

1,395

 

 

The following table presents the weighted average remaining term of the leases and the weighted average discount rate:

 

 

 

March 31,
2023

 

 

December 31,
2022

 

Weighted-average remaining term – operating leases (years)

 

 

3.1

 

 

 

3.3

 

Weighted-average discount rate – operating leases

 

 

7.38

%

 

 

6.62

%

 

 

 

 

 

 

 

Lease liability, current portion

 

$

306

 

 

$

301

 

Lease liability, long-term portion

 

 

918

 

 

 

1,002

 

Total

 

$

1,224

 

 

$

1,303

 

Operating lease costs and operating cash flows from our operating leases are as follows:

 

 

 

Three months ended March 31,

 

 

 

2023

 

 

2022

 

Operating lease cost

 

$

128

 

 

$

121

 

Operating cash flows from operating leases

 

$

128

 

 

$

143