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v3.22.2.2

Leases | 9 Months Ended
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Sep. 30, 2022
Leases [Abstract] |
Leases | Leases In July 2021, the Company entered into a long-term rental agreement to lease its manufacturing facility in Waller, Texas, for $40.0 thousand per month for sixty-four months. Rental income recognized during nine months ended September 30, 2022 was $121.0 thousand, and was included in other expense, net in the consolidated statement of operations. Rental income recognized during the three and nine months ended September 30, 2021 was nil. As discussed in Note 6, “Property and Equipment” this facility was sold on April 18, 2022 and the lease agreement between the tenant and the Company terminated. In August 2021, the Company entered into a five-year triple net operating lease agreement to lease its warehouse facility in Monahans, Texas, for $21.0 thousand per month, and the tenant occupied the warehouse facility in September 2021. Rental income recognized during the three and nine months ended September 30, 2022 was $65.0 thousand and $196.0 thousand, respectively, and was included in other expense, net in the consolidated statement of operations. Rental income recognized during the three and nine months ended September 30, 2021 was $12.0 thousand and was included in other expense, net in the consolidated statement of operations. 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,
| 2022 |  | 2021 |  | 2022 |  | 2021
Operating lease expense | $ | 217 |  |  | $ | 247 |  |  | $ | 665 |  |  | $ | 735 |
Finance lease expense: |  |  |  |  |  |  |
Amortization of right-of-use assets | 4 |  |  | 4 |  |  | 11 |  |  | 11 |
Interest on lease liabilities | 1 |  |  | 2 |  |  | 5 |  |  | 9 |
Total finance lease expense | 5 |  |  | 6 |  |  | 16 |  |  | 20 |
Short-term lease expense | 68 |  |  | 15 |  |  | 270 |  |  | 44 |
Total lease expense | $ | 290 |  |  | $ | 268 |  |  | $ | 951 |  |  | $ | 799 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows used in operating leases | $ | 461 |  |  | $ | 380 |  |  | $ | 1,186 |  |  | $ | 1,107 |
Operating cash flows from finance leases | 13 |  |  | 10 |  |  | 32 |  |  | 62 |
Financing cash flows from finance leases | 1 |  |  | 2 |  |  | 5 |  |  | 8 |
Maturities of lease liabilities as of September 30, 2022 are as follows (in thousands):
Years ending December 31, |  | Operating Leases |  | Finance Leases
2022 (excluding the nine months ended September 30, 2022) | $ | 262 |  |  | $ | 9 |
2023 |  | 1,221 |  |  | 39 |
2024 |  | 1,247 |  |  | 22 |
2025 |  | 1,274 |  |  | — |
2026 |  | 1,302 |  |  | — |
Thereafter |  | 4,782 |  |  | — |
Total lease payments |  | $ | 10,088 |  |  | $ | 70 |
Less: Interest |  | (2,853) |  |  | (6) |
Present value of lease liabilities |  | $ | 7,235 |  |  | $ | 64 |
Supplemental balance sheet information related to leases is as follows (in thousands):
| September 30, 2022 |  | December 31, 2021 |  |
Operating Leases |  |  |  |  |
Operating lease right-of-use assets | $ | 1,715 |  |  | $ | 2,041 |  |  |
Current portion of operating lease liabilities | 653 |  |  | 602 |  |  |
Long-term operating lease liabilities | 6,582 |  |  | 7,779 |  |  |
Total operating lease liabilities | $ | 7,235 |  |  | $ | 8,381 |  |  |
Finance Leases |  |  |  |  |
Property and equipment | $ | 147 |  |  | $ | 147 |  |  |
Accumulated depreciation | (52) |  |  | (33) |  |  |
Property and equipment, net | $ | 95 |  |  | $ | 114 |  |  |
Current portion of finance lease liabilities | $ | 35 |  |  | $ | 41 |  |  |
Long-term finance lease liabilities | 29 |  |  | 53 |  |  |
Total finance lease liabilities | $ | 64 |  |  | $ | 94 |  |  |
Weighted Average Remaining Lease Term |  |  |  |  |
Operating leases | 8.9 years |  | 9.1 years |  |
Finance leases | 1.8 years |  | 2.9 years |  |
Weighted Average Discount Rate |  |  |  |  |
Operating leases | 8.9 | % |  | 8.9 | % |  |
Finance leases | 9.0 | % |  | 8.9 | % |  |
Leases | Leases In July 2021, the Company entered into a long-term rental agreement to lease its manufacturing facility in Waller, Texas, for $40.0 thousand per month for sixty-four months. Rental income recognized during nine months ended September 30, 2022 was $121.0 thousand, and was included in other expense, net in the consolidated statement of operations. Rental income recognized during the three and nine months ended September 30, 2021 was nil. As discussed in Note 6, “Property and Equipment” this facility was sold on April 18, 2022 and the lease agreement between the tenant and the Company terminated. In August 2021, the Company entered into a five-year triple net operating lease agreement to lease its warehouse facility in Monahans, Texas, for $21.0 thousand per month, and the tenant occupied the warehouse facility in September 2021. Rental income recognized during the three and nine months ended September 30, 2022 was $65.0 thousand and $196.0 thousand, respectively, and was included in other expense, net in the consolidated statement of operations. Rental income recognized during the three and nine months ended September 30, 2021 was $12.0 thousand and was included in other expense, net in the consolidated statement of operations. 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,
| 2022 |  | 2021 |  | 2022 |  | 2021
Operating lease expense | $ | 217 |  |  | $ | 247 |  |  | $ | 665 |  |  | $ | 735 |
Finance lease expense: |  |  |  |  |  |  |
Amortization of right-of-use assets | 4 |  |  | 4 |  |  | 11 |  |  | 11 |
Interest on lease liabilities | 1 |  |  | 2 |  |  | 5 |  |  | 9 |
Total finance lease expense | 5 |  |  | 6 |  |  | 16 |  |  | 20 |
Short-term lease expense | 68 |  |  | 15 |  |  | 270 |  |  | 44 |
Total lease expense | $ | 290 |  |  | $ | 268 |  |  | $ | 951 |  |  | $ | 799 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows used in operating leases | $ | 461 |  |  | $ | 380 |  |  | $ | 1,186 |  |  | $ | 1,107 |
Operating cash flows from finance leases | 13 |  |  | 10 |  |  | 32 |  |  | 62 |
Financing cash flows from finance leases | 1 |  |  | 2 |  |  | 5 |  |  | 8 |
Maturities of lease liabilities as of September 30, 2022 are as follows (in thousands):
Years ending December 31, |  | Operating Leases |  | Finance Leases
2022 (excluding the nine months ended September 30, 2022) | $ | 262 |  |  | $ | 9 |
2023 |  | 1,221 |  |  | 39 |
2024 |  | 1,247 |  |  | 22 |
2025 |  | 1,274 |  |  | — |
2026 |  | 1,302 |  |  | — |
Thereafter |  | 4,782 |  |  | — |
Total lease payments |  | $ | 10,088 |  |  | $ | 70 |
Less: Interest |  | (2,853) |  |  | (6) |
Present value of lease liabilities |  | $ | 7,235 |  |  | $ | 64 |
Supplemental balance sheet information related to leases is as follows (in thousands):
| September 30, 2022 |  | December 31, 2021 |  |
Operating Leases |  |  |  |  |
Operating lease right-of-use assets | $ | 1,715 |  |  | $ | 2,041 |  |  |
Current portion of operating lease liabilities | 653 |  |  | 602 |  |  |
Long-term operating lease liabilities | 6,582 |  |  | 7,779 |  |  |
Total operating lease liabilities | $ | 7,235 |  |  | $ | 8,381 |  |  |
Finance Leases |  |  |  |  |
Property and equipment | $ | 147 |  |  | $ | 147 |  |  |
Accumulated depreciation | (52) |  |  | (33) |  |  |
Property and equipment, net | $ | 95 |  |  | $ | 114 |  |  |
Current portion of finance lease liabilities | $ | 35 |  |  | $ | 41 |  |  |
Long-term finance lease liabilities | 29 |  |  | 53 |  |  |
Total finance lease liabilities | $ | 64 |  |  | $ | 94 |  |  |
Weighted Average Remaining Lease Term |  |  |  |  |
Operating leases | 8.9 years |  | 9.1 years |  |
Finance leases | 1.8 years |  | 2.9 years |  |
Weighted Average Discount Rate |  |  |  |  |
Operating leases | 8.9 | % |  | 8.9 | % |  |
Finance leases | 9.0 | % |  | 8.9 | % |  |

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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 https://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 https://asc.fasb.org/subtopic&trid=77888251 + Details
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