XML 28 R18.htm IDEA: XBRL DOCUMENT

LEASES

6 Months Ended

Jun. 30, 2022

12. LEASES

The Company leases certain offices, facilities and equipment under operating and financing leases. Our leases have remaining terms ranging from less than 1 year to 5 years some of which contain options to extend up to 5 years. As of June 30, 2022 and December 31, 2021, assets recorded under finance leases were $1.2 million and $1.6 million, respectively, and accumulated amortization associated with finance leases were $420 and $1.1 million, respectively.

As of June 30, 2022 and December 31, 2021, assets recorded under operating leases were $2.5 million and $3.9 million, respectively, and accumulated amortization associated with operating leases were $1.0 million and $2.3 million, respectively. During the three months ended June 30, 2022, the Company executed two finance lease agreements for equipment at its Champlin, Minnesota location. After adjusting for a weighted average discount rate, the Company recognized a right-of-use asset and lease liability of approximately $395 within the consolidated balance sheets.

The components of the lease expense were as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Operating lease cost	$	188	$	142	$	375	$	284

Finance lease cost
Amortization of right-of-use asset	$	73	$	50	$	124	$	156
Interest on lease liabilities		11		10		21		21
Total finance lease cost	$	84	$	60	$	145	$	177

Other information related to leases was as follows:

Supplemental Cash Flows Information


	June 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flow payments for operating leases	$	372	$	272
Operating cash flow payments for finance leases		21		21
Financing cash flow payments for finance leases		135		163
Right-of-use assets obtained in exchange for lease obligations
Operating lease liabilities arising from obtaining right of use assets		551		—

Weighted Average Remaining Lease Term

	June 30,
	2022	2021
Operating leases	2 years	4 years
Finance leases	3 years	2 years

Weighted Average Discount Rate

	June 30,
	2022		2021
Operating leases		5.50%		5.50%
Finance leases		6.56%		6.80%

Future minimum lease payments under non-cancellable leases as of June 30, 2022 were as follows:

	Operating			Finance
	Leases			Leases
2022	$	369		$	147
2023		670			388
2024		508			158
2025		95			174
Thereafter		24			108
Total future minmum lease payments		1,666			975
Less imputed interest		(113	)		(112	)
Total future minmum lease payments	$	1,553		$	863

Reported as of June 30, 2022:

	Operating		Finance
	Leases		Leases
Right-of-use assets	$	1,511	$	826

	Operating		Finance
	Leases		Leases
Accounts payable and accrued liabilities	$	631	$	345
Other long-term liabilities		922		518
Total	$	1,553	$	863