XML 25 R14.htm IDEA: XBRL DOCUMENT
v3.23.1

Leases | 3 Months Ended
--- | ---
Mar. 31, 2023
Leases [Abstract] |
Leases | Note 8 – Leases The Company leases office and warehouse space in four locations: Del Mar, California, Hayward, California, San Diego, California and Edwardsville, Illinois. The Company determined that all of its lease arrangements are classified as operating leases. On August 12, 2022, the Company entered into an agreement with Liberty Industrial Park, LLC pursuant to which the Company leases 6,627 square feet of industrial space in San Diego, California. The lease has a commencement date of September 1, 2022. It provides for an initial monthly base rent of $11,266, which increases on an annual basis to $13,180 per month in the final year. In addition, the Company is obligated to pay its share of maintenance costs of common areas. The right-of-use assets and lease liabilities for each lease location are as follows (in thousands):
|  | March 31, |  |  | December 31, |
|  | 2023 |  |  | 2022 |
Right-of-use assets: |  |  |  |  |  |
Del Mar, CA |  | $ | 299 |  |  | $ | 336 |
Hayward, CA |  |  | 1,732 |  |  |  | 1,800 |
San Diego, CA |  |  | 562 |  |  |  | 590 |
Edwardsville, IL |  |  | 24 |  |  |  | 50 |
Total right-of-use assets |  | $ | 2,617 |  |  | $ | 2,776 |
Lease liabilities |  |  |  |  |  |
Del Mar, CA |  | $ | 322 |  |  | $ | 360 |
Hayward, CA |  |  | 1,791 |  |  |  | 1,852 |
San Diego, CA |  |  | 579 |  |  |  | 605 |
Edwardsville, IL |  |  | 22 |  |  |  | 50 |
Total lease liabilities |  | $ | 2,714 |  |  | $ | 2,867 |
The Company’s leases generally do not provide an implicit rate, and, therefore, the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular currency environment. The Company used its incremental borrowing rate as of January 1, 2019 for operating leases that commenced prior to that date. As of January 1, 2019, the Company’s incremental borrowing rate was 5.25%. For leases commencing after January 1, 2019 the Company uses its incremental borrowing rate at time of commencement. On September 1, 2022 the Company’s incremental borrowing rate was 5.5%. The weighted average remaining lease term for operating leases is 4.8 years and the weighted average discount rate is 5.1%. Lease expense is recognized on a straight-line basis over the lease term. For the three months ended March 31, 2023 and 2022, lease expense was approximately $0.2 million and $0.1 million, respectively. As of March 31, 2023, undiscounted future minimum lease payments related to leases that have initial or remaining lease terms in excess of one year are as follows (in thousands):
2023 (remainder of year from April 1, 2023 to December 31, 2023) |  | $ | 515 |
2024 |  |  | 674 |
2025 |  |  | 546 |
2026 |  |  | 531 |
2027 |  |  | 496 |
Thereafter |  |  | 312 |
Total undiscounted future minimum lease payments |  |  | 3,074 |
Less: imputed interest |  |  | (360 | )
Present value of lease liabilities |  | $ | 2,714 |

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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration