Better Choice Company Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Operating leases

Operating leases

6 Months Ended

Jun. 30, 2020

Note 8 – Operating leases

The table below presents certain information related to the lease costs for operating leases for the three and six months ended June 30, 2020 and 2019:

	For the Six Months Ended				For the Three Months Ended
Dollars in thousands	June 30, 2020		June 30, 2019		June 30, 2020		June 30, 2019

Operating lease costs	$	221	$	124	$	111	$	80
Variable lease costs		16		16	8			8
Total operating lease costs	$	237	$	140	$	119	$	88

As of June 30, 2020, the weighted-average remaining operating lease term was 2.1 years and the incremental borrowing rate was 12.5% for operating leases recognized on the Company’s condensed consolidated balance sheets. Short term lease costs, excluding expenses relating to leases with a lease term of one month or less, were less than $0.1 million for both the three and six months ended June 30, 2020, respectively. During the three and six months ended June 30, 2019, the Company recorded no short term lease costs.

Rent expense was $0.1 and $0.2 million for the three and six months ended June 30, 2020, respectively, and $0.1 million for both the three and six months ended June 30, 2019.

Undiscounted cash flows

The table below reconciles the undiscounted cash flows for the remaining term of the operating lease liabilities recorded on the condensed consolidated balance sheets.

Operating Leases

Remainder of 2020	$	226
2021		464
2022		246
2023		7
Total minimum lease payments	$	943
Less: amount of lease payments representing interest		110
Present value of future minimum lease payments	$	833
Less: current obligations under leases		341
Long-term lease obligations	$	492