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LEASES | 9 Months Ended
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Sep. 30, 2023
Leases [Abstract] |
LEASES | LEASES As of September 30, 2023, the Company has a non-cancelable operating lease for its corporate office, which is located in Lake Forest, Illinois (the “Lake Forest Lease”). On May 1, 2023, the Company am ended the Lake Forest Lease to reduce the size of leased premises and extend the term of the lease through December 31, 2030. In conjunction with the amendment of the Lake Forest Lease on May 1, 2023, the Company recognized an increase to both operating right-of-use asset and noncurrent operating lease liability of approximately $1.3 million, calculated using a discount rate of 7.41%. Prior to the Company’s corporate headquarters relocation in 2018, the Company had leased its previous corporate office in Newark, California (the “Newark Lease”), whi ch terminated at the end of November 2022. The Newark lease was partially subleased through the lease term of November 2022. Operating lease costs and sublease income related to the Newark facility are accounted for in Other gain in the Company’s Condensed Consolidated Statements of Comprehensive (Loss) Income. Sublease income for the nine months ended September 30, 2022 includes a gain of $0.6 million from the early termination and settlement of a Newark facility sublease during the first quarter of 2022. In connection with the Spectrum Merger, the Company assumed leases for two facilities and certain office equipment which Spectrum had previously been the lessee. As of September 30, 2023, the Company has recognized an operating right-of-use asset associated with these leases of $0.4 million, and a current and noncurrent lease liability associated with these leases of $0.7 million and $0.3 million, respectively. Refer to Note 19, Restructuring Charges, for further detail on the accounting for the leases assumed in the Spectrum Merger. The following table reflects lease expense and income for the three and nine months ended September 30, 2023 and 2022 (in thousands):
|  |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
| Financial Statement Classification |  | 2023 |  | 2022 |  | 2023 |  | 2022
Operating lease cost | Selling, general and administrative expenses |  | $ | 65 |  |  | $ | 39 |  |  | $ | 161 |  |  | $ | 118 |
Operating lease cost | Other gain |  | — |  |  | 148 |  |  | — |  |  | 444 |
Total lease cost |  |  | $ | 65 |  |  | $ | 187 |  |  | $ | 161 |  |  | $ | 562 |
Sublease Income | Other gain |  | $ | — |  |  | $ | 168 |  |  | $ | — |  |  | $ | 1,111 |
The following table reflects supplemental cash flow information related to leases for the three and nine months ended September 30, 2023 and 2022 (in thousands):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2023 |  | 2022 |  | 2023 |  | 2022
Cash paid for amounts included in measurement of liabilities: |  |  |  |  |  |  |
Operating cash flows from operating leases | $ | 225 |  |  | $ | 533 |  |  | $ | 433 |  |  | $ | 1,593 |
The following table reflects supplemental balance sheet information related to leases as of September 30, 2023 and December 31, 2022 (in thousands):
| Financial Statement Classification |  | September 30, 2023 |  | December 31, 2022
Assets |  |  |  |  |
Operating lease right-of-use assets | Other long-term assets |  | $ | 1,806 |  |  | $ | 137 |
Liabilities |  |  |  |  |
Current operating lease liabilities | Other current liabilities |  | $ | 970 |  |  | $ | 401 |
Noncurrent operating lease liabilities | Other long-term liabilities |  | 1,679 |  |  | — |
Total lease liabilities |  |  | $ | 2,649 |  |  | $ | 401 |
LEASES | LEASES As of September 30, 2023, the Company has a non-cancelable operating lease for its corporate office, which is located in Lake Forest, Illinois (the “Lake Forest Lease”). On May 1, 2023, the Company am ended the Lake Forest Lease to reduce the size of leased premises and extend the term of the lease through December 31, 2030. In conjunction with the amendment of the Lake Forest Lease on May 1, 2023, the Company recognized an increase to both operating right-of-use asset and noncurrent operating lease liability of approximately $1.3 million, calculated using a discount rate of 7.41%. Prior to the Company’s corporate headquarters relocation in 2018, the Company had leased its previous corporate office in Newark, California (the “Newark Lease”), whi ch terminated at the end of November 2022. The Newark lease was partially subleased through the lease term of November 2022. Operating lease costs and sublease income related to the Newark facility are accounted for in Other gain in the Company’s Condensed Consolidated Statements of Comprehensive (Loss) Income. Sublease income for the nine months ended September 30, 2022 includes a gain of $0.6 million from the early termination and settlement of a Newark facility sublease during the first quarter of 2022. In connection with the Spectrum Merger, the Company assumed leases for two facilities and certain office equipment which Spectrum had previously been the lessee. As of September 30, 2023, the Company has recognized an operating right-of-use asset associated with these leases of $0.4 million, and a current and noncurrent lease liability associated with these leases of $0.7 million and $0.3 million, respectively. Refer to Note 19, Restructuring Charges, for further detail on the accounting for the leases assumed in the Spectrum Merger. The following table reflects lease expense and income for the three and nine months ended September 30, 2023 and 2022 (in thousands):
|  |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
| Financial Statement Classification |  | 2023 |  | 2022 |  | 2023 |  | 2022
Operating lease cost | Selling, general and administrative expenses |  | $ | 65 |  |  | $ | 39 |  |  | $ | 161 |  |  | $ | 118 |
Operating lease cost | Other gain |  | — |  |  | 148 |  |  | — |  |  | 444 |
Total lease cost |  |  | $ | 65 |  |  | $ | 187 |  |  | $ | 161 |  |  | $ | 562 |
Sublease Income | Other gain |  | $ | — |  |  | $ | 168 |  |  | $ | — |  |  | $ | 1,111 |
The following table reflects supplemental cash flow information related to leases for the three and nine months ended September 30, 2023 and 2022 (in thousands):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2023 |  | 2022 |  | 2023 |  | 2022
Cash paid for amounts included in measurement of liabilities: |  |  |  |  |  |  |
Operating cash flows from operating leases | $ | 225 |  |  | $ | 533 |  |  | $ | 433 |  |  | $ | 1,593 |
The following table reflects supplemental balance sheet information related to leases as of September 30, 2023 and December 31, 2022 (in thousands):
| Financial Statement Classification |  | September 30, 2023 |  | December 31, 2022
Assets |  |  |  |  |
Operating lease right-of-use assets | Other long-term assets |  | $ | 1,806 |  |  | $ | 137 |
Liabilities |  |  |  |  |
Current operating lease liabilities | Other current liabilities |  | $ | 970 |  |  | $ | 401 |
Noncurrent operating lease liabilities | Other long-term liabilities |  | 1,679 |  |  | — |
Total lease liabilities |  |  | $ | 2,649 |  |  | $ | 401 |

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- 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
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- 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
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