|3 Months Ended|
Mar. 31, 2022
NOTE 6 - LEASES
As described in “Note 3 - Accounting Standards” the Company adopted ASC 842, Leases, on January 1, 2022. Prior periods presented have not been adjusted and continue to be reported in accordance with the legacy guidance in ASC 840, Leases. The Company’s capital lease assets and related accumulated amortization were recorded as property and equipment and the capital lease liabilities were recorded as current and long-term capital lease obligations on the condensed consolidated balance sheet as of December 31, 2021. See “Note 5 - Property and Equipment, Net” and “Note 11 - Debt” regarding disclosure of capital leases.
The Company has operating and financing leases for office facilities, light duty vehicles and equipment. The Company does not have any material lessor arrangements.
The weighted average remaining lease term and discount rates used in the measurement of the Company’s right-of-use assets and lease liabilities are as follows:
The components of lease expense consisted of the following:
In accordance with prior guidance, ASC 840, rent expense was $0.3 million for the three months ended March 31, 2021, of which $0.2 million was recorded as cost of services and $0.1 million was recorded as selling, general and administrative expenses in the condensed consolidated statements of operations.
Supplemental cash flow information related to leases is as follows:
As of March 31, 2022, the future maturities of lease liabilities are as follows:
As of December 31, 2021, in accordance with prior guidance, ASC 840, the minimum future payments on non-cancellable operating leases and capital leases are as follows:
The total capital lease payments include imputed interest.
In October 2021, the Company completed a sale-leaseback transaction for a short-term operating lease. The Company deferred a $7.4 million gain from disposal of assets to accrued expenses and other current liabilities to amortize over the minimum term of the lease. As of March 31, 2022 and December 31, 2021, the remaining deferred gain on the sale-leaseback transaction was $3.7 million and $5.6 million, respectively.