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Lease Commitments

12 Months Ended

Dec. 31, 2021

(6)

Lease Commitments

The Company’s operating lease portfolio is comprised of operating leases for office, warehouse space and equipment. Certain of the Company’s leases include one or more options to renew or terminate the lease at the Company’s discretion. The Company regularly evaluates the renewal and termination options and when they are reasonably certain of exercise, includes the renewal or termination option in our lease term. During the first seven months of the term of our newly leased building, we have subleased a portion of the unused floorspace on a temporary basis. This sublease may convert to a month-to-month lease upon expiration.

As of December 31, 2021, the ROU asset had a balance of $12,075 which is included in the “Operating lease right-of-use assets” line item of these consolidated financial statements and current and non-current lease liabilities related to the ROU asset of $1,983 and $10,306, respectively. As of December 31, 2020, the ROU asset had a balance of $1,827 which is included in the “Operating lease right-of-use assets” line item of these consolidated financial statements and current and non-current lease liabilities related to the ROU asset of $431 and $1,651, respectively. These amounts are included in the “Current portion of operating lease obligations” and “Long-term portion of operating lease obligations” line items of these consolidated financial statements. The discount rates used for leases accounted for under ASC 842 are based on an interest rate yield curve developed for the leases in the Company’s portfolio.

The office leases contain variable lease payments which consist primarily of rent escalations based on an established index or rate and taxes, insurance, and common area or other maintenance costs, which are paid based on actual costs incurred by the lessor. The Company has elected to utilize the available practical expedient to not separate lease and non-lease components.

Quantitative information regarding the Company’s leases is as follows:


	Twelve Months Ended December 31, 2021		Twelve Months Ended December 31, 2020
Components of lease cost
Finance lease cost components:
Amortization of finance lease assets	$	52	$	70
Interest on finance lease liabilities		18		36
Total finance lease costs		70		106
Operating lease cost components:
Operating lease cost		554		565
Variable lease cost		134		146
Short-term lease cost		49		33
Total operating lease costs		737		744
Total lease cost:	$	807	$	850

Supplemental cash flow information related to leases is as follows for the years ended December 31, 2021 and 2020:

	2021			2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	$	741		$	690

Lease liabilities arising from obtaining right-of-use assets		10,505			—
Weighted-average remaining lease term-finance leases (in years)		0.7			1.4
Weighted-average remaining lease term-operating leases (in years)		9.5			3.2
Weighted-average discount rate-finance leases		9.3	%		9.3	%
Weighted-average discount rate-operating leases		7.5	%		14.3	%

The future maturities of the Company’s finance and operating leases as of December 31, 2021 are as follows:

	Finance Leases			Operating Leases			Total
2022	$	109		$	1,456		$	1,565
2023		6			2,099			2,105
2024		—			2,025			2,025
2025		—			1,470			1,470
2026		—			1,468			1,468
Thereafter		—			8,668			8,668
Total payments	$	115		$	17,186		$	17,301
Less amounts representing interest		(4	)		(4,897	)		(4,901	)
Total minimum payments required	$	111		$	12,289		$	12,400

The future maturities of the Company’s finance and operating leases as of December 31, 2020 were as follows:

	Finance Leases			Operating Leases			Total
2021	$	196		$	701		$	897
2022		109			720			829
2023		5			705			710
2024		—			595			595
2025		—			1			1
Thereafter		—			—			—
Total payments	$	310		$	2,722		$	3,032
Less amounts representing interest		(23	)		(640	)		(663	)
Total minimum payments required	$	287		$	2,082		$	2,369