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Leases
 6 Months Ended
Jun. 30, 2022
Leases  
Leases

4. Leases

 

At the inception of an arrangement, the Company determines if an arrangement is, or contains, a lease based on facts and circumstances present in that arrangement. Lease classifications, recognition, and measurement are then determined at the lease commencement date.

 

The Company’s operating lease right-of-use (“ROU”) assets and operating lease liabilities represent primarily leases for office and warehouse spaces used to conduct our business. Finance leases consist primarily of processing and transport equipment used by our facilities’ operations.

 

The components of lease cost for the Company’s leases for the three and six months ended June 30, 2022 and 2021 were as follows (in thousands):

 

   2022   2021   2022   2021 
   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
   2022   2021   2022   2021 
                 
Operating Leases:                    
Lease cost  $157   $115   $314   $226 
                     
Finance Leases:                    
Amortization of ROU assets   44    58    91    117 
Interest on lease liability   10    18    21    37 
Finance Leases   54    76    112    154 
                     
Short-term lease rent expense   3    3    7    6 
                     
Total lease cost   214    194    433    386 

 

The weighted average remaining lease term and the weighted average discount rate for operating and finance leases at June 30, 2022 were:

 

   Operating Leases   Finance Leases 
Weighted average remaining lease terms (years)   6.5    3.1 
           
Weighted average discount rate   7.7%   6.0%

 

 

The following table reconciles the undiscounted cash flows for the operating and finance leases at June 30, 2022 to the operating and finance lease liabilities recorded on the balance sheet (in thousands):

 

   Operating Leases   Finance Leases 
2022 (Remaining)  $287   $157 
2023   556    174 
2024   416    170 
2025   324    147 
2026   301    18 
2027 and thereafter   942    — 
Total undiscounted lease payments   2,826    666 
Less: Imputed interest   (621)   (53)
Present value of lease payments  $2,205   $613 
           
Current portion of operating lease obligations  $421   $— 
Long-term operating lease obligations, less current portion  $1,784   $— 
Current portion of finance lease obligations  $—   $219 
Long-term finance lease obligations, less current portion  $—   $394 

 

Supplemental cash flow and other information related to our leases were as follows for the three and six months ended June 30, 2022 and 2021 (in thousands):

 

   2022   2021   2022   2021 
   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
   2022   2021   2022   2021 
Cash paid for amounts included in the measurement of lease liabilities:                    
Operating cash flow used in operating leases  $143   $103   $286   $204 
Operating cash flow used in finance leases  $10   $18   $21   $37 
Financing cash flow used in finance leases  $661   $91   $718   $205 
                     
ROU assets obtained in exchange for lease obligations for:                    
Finance liabilities  $—   $—   $147   $— 
Operating liabilities  $—   $166   $—   $166