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Leases | 9 Months Ended
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Sep. 30, 2021
Leases [Abstract] |
Leases | Leases In August 2021, the company entered into a five year triple net operating lease agreement to lease a warehouse facility in Monahans, TX. The tenant occupied the Company’s warehouse facility in Monahans, TX in September 2021. The company will recognize other rental income, including rent, taxes and insurance over the lease period. In July 2021, the Company entered into a long-term rental agreement with Resolute Oil to leverage capabilities and facilities to drive growth in adjacent green chemistry markets. The agreement includes options to renew until 2036. Through the agreement, Resolute Oil will fully utilize the Company’s entire 15-acre campus, including the 38,000 square foot chemical blending facility, based in Waller, TX, to manufacture United States Pharmacopeia-National Formulary (USP-NF)-grade white mineral oil distributed globally to customers in the agricultural, energy, food & beverage, cosmetic, and personal care markets. During the first quarter of 2020, the Company ceased use of the corporate headquarters leased offices and moved corporate employees to the Global Research and Innovation Center (“GRIC”) during the second quarter of 2020. In addition, the lease liability and corresponding right-of-use (“ROU”) assets for the corporate headquarters and GRIC were remeasured to remove the anticipated term extensions as the Company determined it was no longer reasonably certain to utilize the extension at the GRIC. The remeasurement resulted in adjustments to lease liabilities and ROU assets totaling of $6.2 million each as of March 31, 2020. During the second quarter of 2020, the Company terminated the lease of the corporate headquarters office and moved all employees to the GRIC facility effective June 29, 2020. In addition, during the three months ended March 31, 2020, the Company recorded an impairment of the ROU assets totaling $7.4 million. No impairment was recognized for the three and nine months ended September 30, 2021. The components of lease expense and supplemental cash flow information are as follows (in thousands):
| Three months ended September 30, |  | Nine months ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Operating lease expense | $ | 247 |  |  | $ | 258 |  |  | $ | 735 |  |  | $ | 1,112 |
Finance lease expense: |  |  |  |  |  |  |
Amortization of right-of-use assets | 4 |  |  | 4 |  |  | 11 |  |  | 13 |
Interest on lease liabilities | 2 |  |  | 5 |  |  | 9 |  |  | 14 |
Total finance lease expense | 6 |  |  | 9 |  |  | 20 |  |  | 27 |
Short-term lease expense | 15 |  |  | 57 |  |  | 44 |  |  | 145 |
Total lease expense | $ | 268 |  |  | $ | 324 |  |  | $ | 799 |  |  | $ | 1,284 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows from operating leases | $ | 380 |  |  | $ | 317 |  |  | $ | 1,107 |  |  | $ | 2,312 |
Operating cash flows from finance leases | 10 |  |  | 5 |  |  | 62 |  |  | 13 |
Financing cash flows from finance leases | 2 |  |  | 51 |  |  | 8 |  |  | 152 |
Maturities of lease liabilities are as follows (in thousands):
Years ending December 31, |  | Operating Leases |  | Finance Leases
2021 (excluding the nine months ended September 30, 2021) | $ | 285 |  |  | $ | 14 |
2022 |  | 1,254 |  |  | 47 |
2023 |  | 1,318 |  |  | 39 |
2024 |  | 1,348 |  |  | 23 |
2025 |  | 1,375 |  |  | — |
Thereafter |  | 6,870 |  |  | — |
Total lease payments |  | $ | 12,450 |  |  | $ | 123 |
Less: Interest |  | (3,976) |  |  | (11) |
Present value of lease liabilities |  | $ | 8,474 |  |  | $ | 112 |
Supplemental balance sheet information related to leases is as follows (in thousands):
| September 30, 2021 |  | December 31, 2020 |  |
Operating Leases |  |  |  |  |
Operating lease right-of-use assets | $ | 2,099 |  |  | $ | 2,320 |  |  |
Current portion of operating lease liabilities | $ | 586 |  |  | $ | 636 |  |  |
Long-term operating lease liabilities | 7,888 |  |  | 8,348 |  |  |
Total operating lease liabilities | $ | 8,474 |  |  | $ | 8,984 |  |  |
Finance Leases |  |  |  |  |
Property and equipment | $ | 147 |  |  | $ | 147 |  |  |
Accumulated depreciation | (33) |  |  | (26) |  |  |
Property and equipment, net | $ | 114 |  |  | $ | 121 |  |  |
Current portion of finance lease liabilities | $ | 48 |  |  | $ | 60 |  |  |
Long-term finance lease liabilities | 64 |  |  | 96 |  |  |
Total finance lease liabilities | $ | 112 |  |  | $ | 156 |  |  |
Weighted Average Remaining Lease Term |  |  |  |  |
Operating leases | 9.1 years |  | 9.9 years |  |
Finance leases | 2.9 years |  | 3.1 years |  |
Weighted Average Discount Rate |  |  |  |  |
Operating leases | 8.9 | % |  | 8.9 | % |  |
Finance leases | 8.5 | % |  | 9.0 | % |  |
Leases | Leases In August 2021, the company entered into a five year triple net operating lease agreement to lease a warehouse facility in Monahans, TX. The tenant occupied the Company’s warehouse facility in Monahans, TX in September 2021. The company will recognize other rental income, including rent, taxes and insurance over the lease period. In July 2021, the Company entered into a long-term rental agreement with Resolute Oil to leverage capabilities and facilities to drive growth in adjacent green chemistry markets. The agreement includes options to renew until 2036. Through the agreement, Resolute Oil will fully utilize the Company’s entire 15-acre campus, including the 38,000 square foot chemical blending facility, based in Waller, TX, to manufacture United States Pharmacopeia-National Formulary (USP-NF)-grade white mineral oil distributed globally to customers in the agricultural, energy, food & beverage, cosmetic, and personal care markets. During the first quarter of 2020, the Company ceased use of the corporate headquarters leased offices and moved corporate employees to the Global Research and Innovation Center (“GRIC”) during the second quarter of 2020. In addition, the lease liability and corresponding right-of-use (“ROU”) assets for the corporate headquarters and GRIC were remeasured to remove the anticipated term extensions as the Company determined it was no longer reasonably certain to utilize the extension at the GRIC. The remeasurement resulted in adjustments to lease liabilities and ROU assets totaling of $6.2 million each as of March 31, 2020. During the second quarter of 2020, the Company terminated the lease of the corporate headquarters office and moved all employees to the GRIC facility effective June 29, 2020. In addition, during the three months ended March 31, 2020, the Company recorded an impairment of the ROU assets totaling $7.4 million. No impairment was recognized for the three and nine months ended September 30, 2021. The components of lease expense and supplemental cash flow information are as follows (in thousands):
| Three months ended September 30, |  | Nine months ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Operating lease expense | $ | 247 |  |  | $ | 258 |  |  | $ | 735 |  |  | $ | 1,112 |
Finance lease expense: |  |  |  |  |  |  |
Amortization of right-of-use assets | 4 |  |  | 4 |  |  | 11 |  |  | 13 |
Interest on lease liabilities | 2 |  |  | 5 |  |  | 9 |  |  | 14 |
Total finance lease expense | 6 |  |  | 9 |  |  | 20 |  |  | 27 |
Short-term lease expense | 15 |  |  | 57 |  |  | 44 |  |  | 145 |
Total lease expense | $ | 268 |  |  | $ | 324 |  |  | $ | 799 |  |  | $ | 1,284 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows from operating leases | $ | 380 |  |  | $ | 317 |  |  | $ | 1,107 |  |  | $ | 2,312 |
Operating cash flows from finance leases | 10 |  |  | 5 |  |  | 62 |  |  | 13 |
Financing cash flows from finance leases | 2 |  |  | 51 |  |  | 8 |  |  | 152 |
Maturities of lease liabilities are as follows (in thousands):
Years ending December 31, |  | Operating Leases |  | Finance Leases
2021 (excluding the nine months ended September 30, 2021) | $ | 285 |  |  | $ | 14 |
2022 |  | 1,254 |  |  | 47 |
2023 |  | 1,318 |  |  | 39 |
2024 |  | 1,348 |  |  | 23 |
2025 |  | 1,375 |  |  | — |
Thereafter |  | 6,870 |  |  | — |
Total lease payments |  | $ | 12,450 |  |  | $ | 123 |
Less: Interest |  | (3,976) |  |  | (11) |
Present value of lease liabilities |  | $ | 8,474 |  |  | $ | 112 |
Supplemental balance sheet information related to leases is as follows (in thousands):
| September 30, 2021 |  | December 31, 2020 |  |
Operating Leases |  |  |  |  |
Operating lease right-of-use assets | $ | 2,099 |  |  | $ | 2,320 |  |  |
Current portion of operating lease liabilities | $ | 586 |  |  | $ | 636 |  |  |
Long-term operating lease liabilities | 7,888 |  |  | 8,348 |  |  |
Total operating lease liabilities | $ | 8,474 |  |  | $ | 8,984 |  |  |
Finance Leases |  |  |  |  |
Property and equipment | $ | 147 |  |  | $ | 147 |  |  |
Accumulated depreciation | (33) |  |  | (26) |  |  |
Property and equipment, net | $ | 114 |  |  | $ | 121 |  |  |
Current portion of finance lease liabilities | $ | 48 |  |  | $ | 60 |  |  |
Long-term finance lease liabilities | 64 |  |  | 96 |  |  |
Total finance lease liabilities | $ | 112 |  |  | $ | 156 |  |  |
Weighted Average Remaining Lease Term |  |  |  |  |
Operating leases | 9.1 years |  | 9.9 years |  |
Finance leases | 2.9 years |  | 3.1 years |  |
Weighted Average Discount Rate |  |  |  |  |
Operating leases | 8.9 | % |  | 8.9 | % |  |
Finance leases | 8.5 | % |  | 9.0 | % |  |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance 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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