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Leases | 9 Months Ended
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Sep. 30, 2020
Leases [Abstract] |
Leases | LEASESThe Company leases certain equipment, manufacturing, warehouse and office space under non-cancellable operating leases with expirations through 2024 under which it is responsible for related maintenance, taxes and insurance. The Company has one finance lease containing a bargain purchase option upon expiration of the lease in 2022. The lease term consists of the non-cancellable period of the lease, periods covered by options to extend the lease if the Company is reasonably certain to exercise the option, and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise the option. The present value of the remaining lease obligation for these leases was calculated using an incremental borrowing rate of 7.25%, which was the Company’s borrowing rate on its former revolving line of credit with Austin Financial Services, Inc. (the “Austin Credit Facility”). The weighted average remaining lease term for operating, restructuring and finance leases is 1.9 years, 0.8 years, and 1.5 years, respectively. The Company had one restructured lease with a sub-lease component for the New York, New York office that was closed in 2017. The lease expires in 2021. As part of the lease agreement, there was $0.3 million in restricted cash in other current assets on the accompanying Condensed Consolidated Balance Sheets as of September 30, 2020, and $0.3 million in restricted cash in other long-term assets as of December 31, 2019, which represents collateral against the related letter of credit issued as part of this agreement. The restructured lease and sub-lease were deemed to be in-scope and thus subject to the requirements of Accounting Standard Codification 842, Leases (“Topic 842”) and were evaluated for impairment in accordance with the asset impairment provisions of Accounting Standard Codification 360, Property, Plant and Equipment (“Topic 360”). The Company concluded its net right-of-use assets were not impaired and the carrying amount approximates expected sub-lease income in future years as of September 30, 2020. The Company continues to carry certain immaterial operating expenses associated with this lease as restructuring liabilities and will continue to accrete those liabilities in accordance with Accounting Standard Codification 420, Exit or Disposal Cost Obligations (“Topic 420”), as has been done since the cease use date in 2017. For additional information regarding treatment of leases please refer to Note 6, “Leases,” included under Item 8, “Financial Statements and Supplementary Data,” of our 2019 Annual Report. Components of the operating, restructured and finance lease costs recognized in net loss for the three and nine months ended September 30, 2020 and 2019, were as follows (in thousands):
|  |  | Three months ended September 30, |  | Nine months ended September 30,
|  |  | 2020 |  | 2019 |  | 2020 |  | 2019
Operating lease cost (income) |  |  |  |  |  |  |  |  |
Sub-lease income |  |  | $ | (26) |  |  | $ | (25) |  |  | $ | (80) |  |  | $ | (75) |
Lease cost |  |  | 148 |  |  | 156 |  |  | 451 |  |  | 474 |
Operating lease cost, net |  |  | 122 |  |  | 131 |  |  | 371 |  |  | 399 |
Restructured lease cost (income) |  |  |  |  |  |  |  |  |
Sub-lease income |  |  | (68) |  |  | (111) |  |  | (204) |  |  | (334) |
Lease cost |  |  | 59 |  |  | 105 |  |  | 180 |  |  | 321 |
Restructured lease income, net |  |  | (9) |  |  | (6) |  |  | (24) |  |  | (13) |
Finance lease cost |  |  |  |  |  |  |  |  |
Interest of lease liabilities |  |  | — |  |  | 1 |  |  | — |  |  | 2 |
Finance lease cost, net |  |  | — |  |  | 1 |  |  | — |  |  | 2 |
Total lease cost, net |  |  | $ | 113 |  |  | $ | 126 |  |  | $ | 347 |  |  | $ | 388 |
Supplemental balance sheet information related to the Company’s operating and finance leases as of September 30, 2020 and December 31, 2019 are as follows (in thousands):
| September 30, 2020 |  | December 31, 2019
Operating Leases |  |  |
Operating lease right-of-use assets | $ | 923 |  |  | $ | 1,289 |
Restructured lease right-of-use assets | 161 |  |  | 322 |
Operating lease right-of-use assets, total | 1,084 |  |  | 1,611 |
Operating lease liabilities | 1,060 |  |  | 1,480 |
Restructured lease liabilities | 250 |  |  | 488 |
Operating lease liabilities, total | 1,310 |  |  | 1,968 |
Finance Leases |  |  |
Property and equipment | 13 |  |  | 13 |
Allowances for depreciation | (9) |  |  | (5) |
Finance lease assets, net | 4 |  |  | 8 |
Finance lease liabilities | 4 |  |  | 6 |
Total finance lease liabilities | $ | 4 |  |  | $ | 6 |
Future minimum lease payments required under operating, restructured and finance leases for each of the 12-month rolling periods below in effect at September 30, 2020 are as follows (in thousands):
|  | Operating Leases | Restructured Leases | Restructured Leases Sub-lease Payments | Finance Lease
October 2020 to September 2021 |  | $ | 622 |  | $ | 256 |  | $ | (204) |  | $ | 3 |
October 2021 to September 2022 |  | 487 |  | — |  | — |  | 1 |
October 2022 to September 2023 |  | 16 |  | — |  | — |  | — |
October 2023 to September 2024 |  | 5 |  | — |  | — |  | — |
Total future undiscounted lease payments |  | 1,130 |  | 256 |  | (204) |  | 4 |
Less imputed interest |  | (70) |  | (6) |  | 5 |  | — |
Total lease obligations |  | $ | 1,060 |  | $ | 250 |  | $ | (199) |  | $ | 4 |
Supplemental cash flow information related to leases for the nine months ended September 30, 2020 and 2019, was as follows (in thousands):
| Nine months ended September 30,
| 2020 |  | 2019
Supplemental cash flow information |  |  |
Cash paid, net, for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 401 |  |  | $ | 402 |
Operating cash flows from restructured leases | $ | 52 |  |  | $ | 70 |
Financing cash flows from finance leases | $ | 3 |  |  | $ | 2 |

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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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