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Leases | 9 Months Ended
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Sep. 30, 2021
Leases [Abstract] |
Leases | LeasesOn July 30, 2021, the Company terminated its office lease with Millenium-Windfall Partners, Ltd for a fixed settlement of $0.4 million, payable in 43 monthly payments. In accordance with the termination, the Company was released from all future rights and obligations under the lease. In accordance with the termination of the lease, the Company recorded an impairment charge of $0.4 million related to its remaining right-of-use asset for this lease for the three and nine months ended September 30, 2021. The Company also remeasured the lease obligation as of July 30, 2021 and the remaining obligation of $0.4 million under the termination settlement is included in the Company's liabilities at September 30, 2021. The table below summarizes the supplemental balance sheet information related to lease assets and lease liabilities as of September 30, 2021 and December 31, 2020 (in thousands):
| Classification |  | September 30, 2021 |  | December 31, 2020
Assets |  |  |  |  |
Operating lease assets | Right-of-use assets |  | $ | 128 |  | $ | 786
Finance lease assets | Property and equipment, net of accumulated depreciation |  | 90 |  | 6,781
Total lease assets |  |  | $ | 218 |  | $ | 7,567
Liabilities |  |  |  |  |
Current |  |  |  |  |
Operating | Current portion of operating lease obligations |  | $ | 206 |  | $ | 362
Finance | Current portion of finance lease obligation |  | 16 |  | —
Finance | Current portion of finance lease obligation - related parties |  | — |  | 648
Noncurrent |  |  |  |  |
Operating | Long-term portion of operating lease obligation |  | 314 |  | 490
Finance | Long-term portion of finance lease obligations |  | 68 |  | —
Total lease liabilities |  |  | $ | 604 |  | $ | 1,500
The table below summarizes the components of lease expense for the three and nine months ended September 30, 2021 and 2020 (in thousands, unaudited):
Lease Cost |  | Classification |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Operating lease cost |  | Cost of sales |  | $ | 39 |  | $ | 42 |  | $ | 116 |  | $ | 122
Operating lease cost |  | Selling, general and administrative expenses |  | 75 |  | 4 |  | 198 |  | 185
Finance lease cost |  |  |  |  |  |  |  |  |  |
Amortization of leased assets |  | Depreciation |  | 5 |  | 294 |  | 14 |  | 879
Interest on lease liabilities |  | Interest expense |  | 2 |  | 104 |  | 17 |  | 400
Net lease cost |  |  |  | $ | 121 |  | $ | 444 |  | $ | 345 |  | $ | 1,586
On January 25, 2021, the Company entered into three finance lease agreements for vehicles. Under the terms of the lease agreements, the Company has total monthly principal and interest payments of $2 thousand for a 36-month period at an annual rate of 10.7%. The leases include purchase options, which are reasonably certain to occur. In December 2019, the Company refinanced its lease agreement with a subsidiary of The Modern Group, Ltd. (“The Modern Group”) for equipment purchases totaling approximately $3.2 million. Under the terms of the lease agreement, the Company exercised its purchase option and the remaining outstanding lease obligation of approximately $648 thousand became due on January 25, 2021. These assets are included in the Company's property, plant and equipment, net on the Condensed Consolidated Balance Sheets and the purchase had no effect on the net book value of these assets. The schedule below presents the future minimum lease payments for our operating and finance lease obligations at September 30, 2021 (in thousands):
| Operating Leases |  | Finance Leases |  | Total
Remainder 2021 | $ | 85 |  | $ | 6 |  | $ | 91
2022 | 181 |  | 25 |  | 206
2023 | 147 |  | 25 |  | 172
2024 | 131 |  | 41 |  | 172
2025 | 21 |  | — |  | 21
Thereafter | — |  | — |  | —
Total lease payments | 565 |  | 97 |  | 662
Less: Interest | (45) |  | (13) |  | (58)
Present value of lease liabilities | $ | 520 |  | $ | 84 |  | $ | 604
Lease term and discount rates for our operating and finance lease obligations are as follows:
|  | September 30, 2021
Weighted-average remaining lease term (years) |  |
Operating leases |  | 2.7
Finance leases |  | 2.3
Weighted-average discount rate |  |
Operating leases |  | 7.2%
Finance leases |  | 10.7%
The table below summarizes the supplemental cash flow information related to leases for the nine months ended September 30, 2021 and 2020 (in thousands):
|  | September 30, 2021 |  | September 30, 2020
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |
Operating cash flows from operating leases |  | $ | 250 |  | $ | 287
Financing cash flows from finance leases |  | 668 |  | 2,640
Interest paid |  | 35 |  | 400
Noncash activities from right-of-use assets obtained in exchange for lease obligations: |  |  |  |
Operating leases |  | $ | — |  | $ | 1,163
Leases | LeasesOn July 30, 2021, the Company terminated its office lease with Millenium-Windfall Partners, Ltd for a fixed settlement of $0.4 million, payable in 43 monthly payments. In accordance with the termination, the Company was released from all future rights and obligations under the lease. In accordance with the termination of the lease, the Company recorded an impairment charge of $0.4 million related to its remaining right-of-use asset for this lease for the three and nine months ended September 30, 2021. The Company also remeasured the lease obligation as of July 30, 2021 and the remaining obligation of $0.4 million under the termination settlement is included in the Company's liabilities at September 30, 2021. The table below summarizes the supplemental balance sheet information related to lease assets and lease liabilities as of September 30, 2021 and December 31, 2020 (in thousands):
| Classification |  | September 30, 2021 |  | December 31, 2020
Assets |  |  |  |  |
Operating lease assets | Right-of-use assets |  | $ | 128 |  | $ | 786
Finance lease assets | Property and equipment, net of accumulated depreciation |  | 90 |  | 6,781
Total lease assets |  |  | $ | 218 |  | $ | 7,567
Liabilities |  |  |  |  |
Current |  |  |  |  |
Operating | Current portion of operating lease obligations |  | $ | 206 |  | $ | 362
Finance | Current portion of finance lease obligation |  | 16 |  | —
Finance | Current portion of finance lease obligation - related parties |  | — |  | 648
Noncurrent |  |  |  |  |
Operating | Long-term portion of operating lease obligation |  | 314 |  | 490
Finance | Long-term portion of finance lease obligations |  | 68 |  | —
Total lease liabilities |  |  | $ | 604 |  | $ | 1,500
The table below summarizes the components of lease expense for the three and nine months ended September 30, 2021 and 2020 (in thousands, unaudited):
Lease Cost |  | Classification |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Operating lease cost |  | Cost of sales |  | $ | 39 |  | $ | 42 |  | $ | 116 |  | $ | 122
Operating lease cost |  | Selling, general and administrative expenses |  | 75 |  | 4 |  | 198 |  | 185
Finance lease cost |  |  |  |  |  |  |  |  |  |
Amortization of leased assets |  | Depreciation |  | 5 |  | 294 |  | 14 |  | 879
Interest on lease liabilities |  | Interest expense |  | 2 |  | 104 |  | 17 |  | 400
Net lease cost |  |  |  | $ | 121 |  | $ | 444 |  | $ | 345 |  | $ | 1,586
On January 25, 2021, the Company entered into three finance lease agreements for vehicles. Under the terms of the lease agreements, the Company has total monthly principal and interest payments of $2 thousand for a 36-month period at an annual rate of 10.7%. The leases include purchase options, which are reasonably certain to occur. In December 2019, the Company refinanced its lease agreement with a subsidiary of The Modern Group, Ltd. (“The Modern Group”) for equipment purchases totaling approximately $3.2 million. Under the terms of the lease agreement, the Company exercised its purchase option and the remaining outstanding lease obligation of approximately $648 thousand became due on January 25, 2021. These assets are included in the Company's property, plant and equipment, net on the Condensed Consolidated Balance Sheets and the purchase had no effect on the net book value of these assets. The schedule below presents the future minimum lease payments for our operating and finance lease obligations at September 30, 2021 (in thousands):
| Operating Leases |  | Finance Leases |  | Total
Remainder 2021 | $ | 85 |  | $ | 6 |  | $ | 91
2022 | 181 |  | 25 |  | 206
2023 | 147 |  | 25 |  | 172
2024 | 131 |  | 41 |  | 172
2025 | 21 |  | — |  | 21
Thereafter | — |  | — |  | —
Total lease payments | 565 |  | 97 |  | 662
Less: Interest | (45) |  | (13) |  | (58)
Present value of lease liabilities | $ | 520 |  | $ | 84 |  | $ | 604
Lease term and discount rates for our operating and finance lease obligations are as follows:
|  | September 30, 2021
Weighted-average remaining lease term (years) |  |
Operating leases |  | 2.7
Finance leases |  | 2.3
Weighted-average discount rate |  |
Operating leases |  | 7.2%
Finance leases |  | 10.7%
The table below summarizes the supplemental cash flow information related to leases for the nine months ended September 30, 2021 and 2020 (in thousands):
|  | September 30, 2021 |  | September 30, 2020
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |
Operating cash flows from operating leases |  | $ | 250 |  | $ | 287
Financing cash flows from finance leases |  | 668 |  | 2,640
Interest paid |  | 35 |  | 400
Noncash activities from right-of-use assets obtained in exchange for lease obligations: |  |  |  |
Operating leases |  | $ | — |  | $ | 1,163

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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