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Leases

3 Months Ended

Mar. 31, 2022

(8) Leases

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 March 31, 2022, the ROU asset had a balance of $11,718, 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 $890 and $11,389, respectively. 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. The Company has reclassified a portion of the current ROU liability to non-current as of December 31, 2021, to be consistent with the classifications adopted for the quarter ended March 31, 2022. This reclassification resulted in current and non-current lease liabilities related to the ROU asset of $589 and $11,700, respectively, as of December 31, 2021. 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. Additionally, the Company subleases space within its Bolingbrook, IL facility for which the term ends June 30, 2022. As of the date of filing the tenant has neither renewed the sublease nor expressed an intent to do so.

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

	Three Months Ended March 31, 2022			Three Months Ended March 31, 2021
Components of lease cost
Finance lease cost components:
Amortization of finance lease assets	$	11		$	14
Interest on finance lease liabilities		2			6
Total finance lease costs		13			20
Operating lease cost components:
Operating lease cost		363			144
Variable lease cost		172			31
Short-term lease cost		21			10
Sublease income		(183	)		—
Total operating lease costs		373			185
Total lease cost	$	386		$	205

Supplemental cash flow information related to leases is as follows for the three months ended March 31, 2022 and 2021:

	2022			2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	$	190		$	183

Weighted-average remaining lease term-finance leases (in years)		0.6			1.3
Weighted-average remaining lease term-operating leases (in years)		9.3			3.1
Weighted-average discount rate-finance leases		7.6	%		10.1	%
Weighted-average discount rate-operating leases		7.5	%		14.2	%

The future maturities of the Company’s finance and operating leases as of March 31, 2022 are as follows:

	Finance Leases			Operating Leases			Total
2022	$	70		$	1,267		$	1,337
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	$	76		$	16,997		$	17,073
Less amounts representing interest		(2	)		(4,719	)		(4,721	)
Total minimum payments required	$	74		$	12,278		$	12,352

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

	Finance Leases			Operating Leases			Total
2021	$	144		$	559		$	703
2022		109			761			870
2023		5			747			752
2024		—			636			636
2025		—			42			42
Thereafter		—			2			2
Total payments	$	258		$	2,747		$	3,005
Less amounts representing interest		(17	)		(614	)		(631	)
Total minimum payments required	$	241		$	2,133		$	2,374