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Right-of-Use Asset and Lease Liabilities | 3 Months Ended
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Mar. 31, 2021
Leases [Abstract] |
Right-of-Use Asset and Lease Liabilities | 5. Right-of-Use Asset and Lease Liabilities Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company determines if an arrangement is a lease at inception. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Operating lease expense attributable to lease payments is recognized on a straight-line basis over the lease term and is included in cost of sales and selling, general, and administrative expense on the Company’s condensed consolidated statements of operations. Finance leases result in the recognition of depreciation expense, which is recognized on a straight-line basis over the expected life of the leased asset, and interest expense, which is recognized following an effective interest rate method. Depreciation expense attributable to finance leases is included in cost of sales on the Company’s condensed consolidated statements of operations. The Company presents the operating leases in long- term assets and current and long-term liabilities in the accompanying condensed consolidated balance sheets. Finance leases are reported in property and equipment, net, accrued expenses and other current liabilities, and other liabilities on the Company’s condensed consolidated balance sheets. The Company sub-leases approximately 17,073 square feet of office space to a related party, Republic Wireless, Inc. (“Republic”). Future minimum sub-lease receipts required under the non-cancellable lease are as follows:
| As of March 31,
| 2021
2021 (remaining) | $ | 345 |
2022 | 249 |
| $ | 594 |
As of March 31, 2021, the Company had various leased properties in the United States and internationally, with remaining lease terms of eight months to 5.75 years, some of which include options to extend the leases for up to 5 years. None of the options to extend the leases are recognized in operating lease ROU assets or lease liabilities. The Company has one lease with an early-termination option, which it does not expect to exercise. The components of lease expense recorded in the condensed consolidated statement of operations were as follows:
|  |  |  |  |  |  | Three months ended March 31,
|  |  |  |  |  |  |  |  | 2020 |  | 2021
Operating lease cost |  |  |  |  |  |  |  |  | $ | 1,461 |  |  | $ | 1,614 |
Finance lease cost: |  |  |  |  |  |  |  |  |  |  |
Depreciation of assets |  |  |  |  |  |  |  |  | — |  |  | 47 |
Sublease income (1) |  |  |  |  |  |  |  |  | (96) |  |  | (96) |
Total net lease cost |  |  |  |  |  |  |  |  | $ | 1,365 |  |  | $ | 1,565 |
________________________ (1) See Note 15, “Related Parties” to these condensed consolidated financial statements, for additional details on sublease income. During the three months ended March 31, 2020 and 2021, short-term operating lease expense were $0 and $345, respectively. Supplemental balance sheet information related to leases was as follows:
|  | As of December 31, |  | As of March 31,
Leases | Classification | 2020 |  | 2021
Assets: |  |  |  |
Operating lease assets | Operating right-of-use asset, net (1) | $ | 19,491 |  |  | $ | 18,008 |
Finance lease assets | Property and equipment, net (2) | 464 |  |  | 428 |
Total leased assets | $ | 19,955 |  |  | $ | 18,436 |
Liabilities: |  |  |  |
Current |  |  |  |
Operating | Operating lease liability, current | $ | 5,515 |  |  | $ | 5,594 |
Finance | Accrued expenses and other current liabilities | 183 |  |  | 175 |
Non-current |  |  |  |
Operating | Operating lease liability, net of current portion | 17,202 |  |  | 15,609 |
Finance | Other liabilities | 282 |  |  | 258 |
Total lease liabilities | $ | 23,182 |  |  | $ | 21,636 |
________________________ (1) Operating lease assets are recorded net of accumulated amortization of $9,083 and $10,435 as of December 31, 2020 and March 31, 2021, respectively. (2) Finance lease assets are recorded net of accumulated depreciation of $28 and $74 as of December 31, 2020 and March 31, 2021, respectively. Supplemental cash flow and other information related to leases was as follows:
|  |  | Three months ended March 31,
|  |  |  |  | 2020 |  |  |  |  |  | 2021
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  |  |  |  | $ | 1,285 |  |  |  |  |  |  | $ | 1,371 |
Financing cash flows from finance leases |  |  |  |  | — |  |  |  |  |  |  | 44 |
|  |  |  |  | $ | 1,285 |  |  |  |  |  |  | $ | 1,415 |
Weighted average remaining lease term (in years) |  |  |  |  |  |  |  |  |  |  |
Operating leases |  |  |  |  | 4.11 |  |  |  |  |  | 3.53
Finance leases |  |  |  |  | — |  |  |  |  |  |  | 2.86
Weighted average discount rate |  |  |  |  |  |  |  |  |  |  |
Operating leases |  |  |  |  | 4.99 | % |  |  |  |  |  | 4.81 | %
Finance leases |  |  |  |  | — | % |  |  |  |  |  | 4.00 | %
Maturities of operating lease liabilities were as follows:
|  |  | As of March 31,
|  |  | 2021
2021 (remaining) |  |  | $ | 4,756 |
2022 |  |  | 6,736 |
2023 |  |  | 6,593 |
2024 |  |  | 2,670 |
2025 |  |  | 1,648 |
Thereafter |  |  | 718 |
Total lease payments |  |  | 23,121 |
Less: imputed interest |  |  | (1,918) |
Total lease obligations |  |  | 21,203 |
Less: current obligations |  |  | (5,594) |
Long-term lease obligations |  |  | $ | 15,609 |
Maturities of financing lease liabilities were as follows:
|  |  | As of March 31,
|  |  | 2021
2021 (remaining) |  |  | $ | 147 |
2022 |  |  | 148 |
2023 |  |  | 97 |
2024 |  |  | 61 |
2025 |  |  | 4 |
Total lease payments |  |  | 457 |
Less: imputed interest |  |  | (24) |
Total lease obligations |  |  | 433 |
Less: current obligations |  |  | (175) |
Long-term lease obligations |  |  | $ | 258 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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