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Leases | 12 Months Ended
--- | ---
Dec. 31, 2021
Leases [Abstract] |
Leases | Leases In August 2021, the company entered into a five-year triple net operating lease agreement to lease its warehouse facility in Monahans, Texas, for $20,000 per month, and the tenant occupied the warehouse facility in September 2021. The Company will recognize rental income, including rent, taxes and insurance over the lease period. Rental income recognized during the year ended December 31, 2021 was $76,000 and was included in other income in the consolidated statement of operations. In July 2021, the Company entered into a long-term rental agreement to lease its manufacturing facility in Waller, Texas, for $40,000 per month for sixty-four months. Rental income recognized during the year ended December 31, 2021 was $121,000 and was included in other income in the consolidated statement of operations. 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 operating lease liability and corresponding operating lease 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 reductions to lease liabilities and ROU assets totaling of $6.2 million during the year ended December 31, 2020. In addition, during the year ended December 31 2020, the Company recorded an impairment of the ROU assets totaling $7.4 million. No impairment was recognized during the year ended December 31, 2021. Refer to Note 10, “Impairment of Property and Equipment, Operating Lease Right-of-use Assets and Intangible Assets”. The components of lease expense and supplemental cash flow information are as follows (in thousands):
|  |  | Years ended December 31,
|  |  |  |  | 2021 |  | 2020
Operating lease expense |  |  |  |  | $ | 797 |  |  | $ | 1,370 |
Finance lease expense: |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  |  |  | 15 |  |  | 17 |
Interest on lease liabilities |  |  |  |  | 12 |  |  | 18 |
Total finance lease expense |  |  |  |  | 27 |  |  | 35 |
Short-term lease expense |  |  |  |  | 267 |  |  | 202 |
Total lease expense |  |  |  |  | $ | 1,091 |  |  | $ | 1,607 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows from operating leases |  |  |  |  | $ | 1,107 |  |  | $ | 2,884 |
Operating cash flows from finance leases |  |  |  |  | 62 |  |  | 18 |
Financing cash flows from finance leases |  |  |  |  | 8 |  |  | 70 |
Maturities of lease liabilities as of December 31,2021 are as follows (in thousands):
Years ending December 31, |  | Operating Leases |  | Finance Leases
2022 | $ | 1,254 |  |  | $ | 47 |
2023 |  | 1,318 |  |  | 39 |
2024 |  | 1,348 |  |  | 23 |
2025 |  | 1,375 |  |  |
2026 |  | 1,423 |  |  | — |
Thereafter |  | 5,453 |  |  | — |
Total lease payments |  | $ | 12,171 |  |  | $ | 109 |
Less: Interest |  | (3,790) |  |  | (15) |
Present value of lease liabilities |  | $ | 8,381 |  |  | $ | 94 |
Supplemental balance sheet information related to leases is as follows (in thousands):
| December 31, 2021 |  | December 31, 2020 |  |
Operating Leases |  |  |  |  |
Operating lease right-of-use assets | $ | 2,041 |  |  | $ | 2,320 |  |  |
Current portion of operating lease liabilities | $ | 602 |  |  | $ | 636 |  |  |
Long-term operating lease liabilities | 7,779 |  |  | 8,348 |  |  |
Total operating lease liabilities | $ | 8,381 |  |  | $ | 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 | $ | 41 |  |  | $ | 60 |  |  |
Long-term finance lease liabilities | 53 |  |  | 96 |  |  |
Total finance lease liabilities | $ | 94 |  |  | $ | 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 | 8.9 | % |  | 9.0 | % |  |
Leases | Leases In August 2021, the company entered into a five-year triple net operating lease agreement to lease its warehouse facility in Monahans, Texas, for $20,000 per month, and the tenant occupied the warehouse facility in September 2021. The Company will recognize rental income, including rent, taxes and insurance over the lease period. Rental income recognized during the year ended December 31, 2021 was $76,000 and was included in other income in the consolidated statement of operations. In July 2021, the Company entered into a long-term rental agreement to lease its manufacturing facility in Waller, Texas, for $40,000 per month for sixty-four months. Rental income recognized during the year ended December 31, 2021 was $121,000 and was included in other income in the consolidated statement of operations. 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 operating lease liability and corresponding operating lease 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 reductions to lease liabilities and ROU assets totaling of $6.2 million during the year ended December 31, 2020. In addition, during the year ended December 31 2020, the Company recorded an impairment of the ROU assets totaling $7.4 million. No impairment was recognized during the year ended December 31, 2021. Refer to Note 10, “Impairment of Property and Equipment, Operating Lease Right-of-use Assets and Intangible Assets”. The components of lease expense and supplemental cash flow information are as follows (in thousands):
|  |  | Years ended December 31,
|  |  |  |  | 2021 |  | 2020
Operating lease expense |  |  |  |  | $ | 797 |  |  | $ | 1,370 |
Finance lease expense: |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  |  |  | 15 |  |  | 17 |
Interest on lease liabilities |  |  |  |  | 12 |  |  | 18 |
Total finance lease expense |  |  |  |  | 27 |  |  | 35 |
Short-term lease expense |  |  |  |  | 267 |  |  | 202 |
Total lease expense |  |  |  |  | $ | 1,091 |  |  | $ | 1,607 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows from operating leases |  |  |  |  | $ | 1,107 |  |  | $ | 2,884 |
Operating cash flows from finance leases |  |  |  |  | 62 |  |  | 18 |
Financing cash flows from finance leases |  |  |  |  | 8 |  |  | 70 |
Maturities of lease liabilities as of December 31,2021 are as follows (in thousands):
Years ending December 31, |  | Operating Leases |  | Finance Leases
2022 | $ | 1,254 |  |  | $ | 47 |
2023 |  | 1,318 |  |  | 39 |
2024 |  | 1,348 |  |  | 23 |
2025 |  | 1,375 |  |  |
2026 |  | 1,423 |  |  | — |
Thereafter |  | 5,453 |  |  | — |
Total lease payments |  | $ | 12,171 |  |  | $ | 109 |
Less: Interest |  | (3,790) |  |  | (15) |
Present value of lease liabilities |  | $ | 8,381 |  |  | $ | 94 |
Supplemental balance sheet information related to leases is as follows (in thousands):
| December 31, 2021 |  | December 31, 2020 |  |
Operating Leases |  |  |  |  |
Operating lease right-of-use assets | $ | 2,041 |  |  | $ | 2,320 |  |  |
Current portion of operating lease liabilities | $ | 602 |  |  | $ | 636 |  |  |
Long-term operating lease liabilities | 7,779 |  |  | 8,348 |  |  |
Total operating lease liabilities | $ | 8,381 |  |  | $ | 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 | $ | 41 |  |  | $ | 60 |  |  |
Long-term finance lease liabilities | 53 |  |  | 96 |  |  |
Total finance lease liabilities | $ | 94 |  |  | $ | 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 | 8.9 | % |  | 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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- 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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