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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 ClassificationJune 30,
2023
December 31,
2022
Operating right-of-use assets, netRight-of-use assets$6,229 $6,662 
Current operating lease liabilitiesAccrued expenses and other current liabilities$2,006 $1,759 
Non-current operating lease liabilitiesOther long-term liabilities5,498 5,903 
Total operating lease liabilities$7,504 $7,662 
Weighted-average remaining lease term (in years)4.54.1
Weighted-average discount rate9.0 %9.0 %
The components of lease cost were as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
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,
2023202220232022
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 
20242,252 
20251,885 
20261,841 
20271,258 
2028147 
Thereafter717 
Total minimum operating lease payments$9,259 
Less: amounts representing interest(1,755)
Present value of net minimum operating lease payments7,504 
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 ClassificationJune 30,
2023
December 31,
2022
Operating right-of-use assets, netRight-of-use assets$6,229 $6,662 
Current operating lease liabilitiesAccrued expenses and other current liabilities$2,006 $1,759 
Non-current operating lease liabilitiesOther long-term liabilities5,498 5,903 
Total operating lease liabilities$7,504 $7,662 
Weighted-average remaining lease term (in years)4.54.1
Weighted-average discount rate9.0 %9.0 %
The components of lease cost were as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
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,
2023202220232022
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 
20242,252 
20251,885 
20261,841 
20271,258 
2028147 
Thereafter717 
Total minimum operating lease payments$9,259 
Less: amounts representing interest(1,755)
Present value of net minimum operating lease payments7,504 
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.