XML 27 R17.htm IDEA: XBRL DOCUMENT
v3.23.2

Leases | 6 Months Ended
--- | ---
Jun. 30, 2023
Leases [Abstract] |
Leases | Leases The components of the right-of-use assets and lease liabilities were as follows (in thousands):
| Balance Sheet Classification |  | June 30, 2023 |  | December 31, 2022 |  |
Operating right-of-use assets, net | Right-of-use assets |  | $ | 6,229 |  |  | $ | 6,662 |  |  |
Current operating lease liabilities | Accrued expenses and other current liabilities |  | $ | 2,006 |  |  | $ | 1,759 |  |  |
Non-current operating lease liabilities | Other long-term liabilities |  | 5,498 |  |  | 5,903 |  |  |
Total operating lease liabilities |  |  | $ | 7,504 |  |  | $ | 7,662 |  |  |
Weighted-average remaining lease term (in years) |  |  | 4.5 |  | 4.1 |  |
Weighted-average discount rate |  |  | 9.0 | % |  | 9.0 | % |  |
The components of lease cost were as follows (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30, |  |
| 2023 |  | 2022 |  | 2023 |  | 2022 |  |
Operating lease costs included in operating costs and expenses | $ | 582 |  |  | $ | 590 |  |  | $ | 1,174 |  |  | $ | 1,200 |  |  |
Supplemental cash flow information related to leases was as follows (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Operating cash flows related to operating leases | $ | 607 |  |  | $ | 617 |  |  | $ | 1,231 |  |  | $ | 1,239 |
Operating right-of-use assets obtained in exchange for lease liabilities | $ | 783 |  |  | $ | 79 |  |  | $ | 833 |  |  | $ | 158 |
Future minimum payments under operating leases were as follows as of June 30, 2023 (in thousands):
2023 (remainder) | $ | 1,159 |
2024 | 2,252 |
2025 | 1,885 |
2026 | 1,841 |
2027 | 1,258 |
2028 | 147 |
Thereafter | 717 |
Total minimum operating lease payments | $ | 9,259 |
Less: amounts representing interest | (1,755) |
Present value of net minimum operating lease payments | 7,504 |
Less: current portion | (2,006) |
Long-term portion of operating lease obligations | $ | 5,498 |
Sublease of operating lease The Company subleased one of its leased properties in San Diego effective June 2023 for total sublease rental payments of $1.2 million over 4.25 years, without a change to nor relief from current obligations under the original lease agreement which the Company continued accounting as an operating lease. Sublease income earned on a straight-line basis amounted to less than $0.1 million for the three and six months ended June 30, 2023 and is included under other income (expense) in the condensed consolidated statements of operations. Further, the associated lease cost for the term of the sublease, which is equal to the remaining term of the original lease, exceeded the anticipated sublease income for the same period. The Company treated this as an indicator that the carrying amount of the right-of-use asset associated with the original lease may not be recoverable. As a result, the Company tested the related right-of-use asset for recoverability and determined that the carrying amount of the lease was not recoverable as it exceeded its fair value. Accordingly, an impairment loss of approximately $0.5 million was determined as the difference between the $1.5 million carrying value of the right-of-use asset and the $1.0 million fair value. The fair value of the right-of-use asset for the original lease was determined based on the net present value of the total future cash flows from the related sublease agreement as of June 2, 2023 (sublease commencement date), using a 9% marketable discount rate that considers the amount and term of the sublease.
Leases | Leases The components of the right-of-use assets and lease liabilities were as follows (in thousands):
| Balance Sheet Classification |  | June 30, 2023 |  | December 31, 2022 |  |
Operating right-of-use assets, net | Right-of-use assets |  | $ | 6,229 |  |  | $ | 6,662 |  |  |
Current operating lease liabilities | Accrued expenses and other current liabilities |  | $ | 2,006 |  |  | $ | 1,759 |  |  |
Non-current operating lease liabilities | Other long-term liabilities |  | 5,498 |  |  | 5,903 |  |  |
Total operating lease liabilities |  |  | $ | 7,504 |  |  | $ | 7,662 |  |  |
Weighted-average remaining lease term (in years) |  |  | 4.5 |  | 4.1 |  |
Weighted-average discount rate |  |  | 9.0 | % |  | 9.0 | % |  |
The components of lease cost were as follows (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30, |  |
| 2023 |  | 2022 |  | 2023 |  | 2022 |  |
Operating lease costs included in operating costs and expenses | $ | 582 |  |  | $ | 590 |  |  | $ | 1,174 |  |  | $ | 1,200 |  |  |
Supplemental cash flow information related to leases was as follows (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Operating cash flows related to operating leases | $ | 607 |  |  | $ | 617 |  |  | $ | 1,231 |  |  | $ | 1,239 |
Operating right-of-use assets obtained in exchange for lease liabilities | $ | 783 |  |  | $ | 79 |  |  | $ | 833 |  |  | $ | 158 |
Future minimum payments under operating leases were as follows as of June 30, 2023 (in thousands):
2023 (remainder) | $ | 1,159 |
2024 | 2,252 |
2025 | 1,885 |
2026 | 1,841 |
2027 | 1,258 |
2028 | 147 |
Thereafter | 717 |
Total minimum operating lease payments | $ | 9,259 |
Less: amounts representing interest | (1,755) |
Present value of net minimum operating lease payments | 7,504 |
Less: current portion | (2,006) |
Long-term portion of operating lease obligations | $ | 5,498 |
Sublease of operating lease The Company subleased one of its leased properties in San Diego effective June 2023 for total sublease rental payments of $1.2 million over 4.25 years, without a change to nor relief from current obligations under the original lease agreement which the Company continued accounting as an operating lease. Sublease income earned on a straight-line basis amounted to less than $0.1 million for the three and six months ended June 30, 2023 and is included under other income (expense) in the condensed consolidated statements of operations. Further, the associated lease cost for the term of the sublease, which is equal to the remaining term of the original lease, exceeded the anticipated sublease income for the same period. The Company treated this as an indicator that the carrying amount of the right-of-use asset associated with the original lease may not be recoverable. As a result, the Company tested the related right-of-use asset for recoverability and determined that the carrying amount of the lease was not recoverable as it exceeded its fair value. Accordingly, an impairment loss of approximately $0.5 million was determined as the difference between the $1.5 million carrying value of the right-of-use asset and the $1.0 million fair value. The fair value of the right-of-use asset for the original lease was determined based on the net present value of the total future cash flows from the related sublease agreement as of June 2, 2023 (sublease commencement date), using a 9% marketable discount rate that considers the amount and term of the sublease.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-30/tableOfContent + Details
Name: | us-gaap_OperatingLeasesOfLessorDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration