XML 24 R11.htm IDEA: XBRL DOCUMENT v3.21.1
Leases
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases LEASESThe Company leases certain equipment, manufacturing, warehouse and office space under non-cancellable operating leases expiring through 2024 under which it is responsible for related maintenance, taxes and insurance. As of January 21, 2021, the terms of one of these equipment operating leases has been extended through 2026. In accordance with Topic 842, the related right-of-use asset and lease liability will be updated at the time of modification in January 2021. The Company has one finance lease containing a bargain purchase option upon expiration of 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 (“IBR”) of 7.25%, which was the Company’s borrowing rate on the revolving credit agreement signed on December 11, 2018. The weighted average remaining lease term for operating, restructured and finance leases is 1.6 years, 0.5 years, and 1.3 years, respectively.
The Company had two restructured leases with sub-lease components for the New York, New York and Arlington, Virginia offices that were closed in 2017. The New York, New York lease expires in 2021 and the Arlington, Virginia lease expired in September 2019. At the “cease use” date in 2017, the Company recorded the present value of the future minimum payments under the leases and costs that continue to be incurred with no economic benefit to the Company in accordance with Topic 420. The Company entered into sub-leases for both offices and included the estimated sub-lease payments as an offset to the remaining lease obligations, as required by Topic 420 at that time. In adopting Topic 842, the carrying value of the aforementioned net liabilities has been reclassified as a reduction of the restructured lease, right-of-use asset, which totaled $0.3 million as of January 1, 2019. As part of the lease agreement for the New York, New York office, there is $0.3 million in restricted cash in prepaid and other current assets on the accompanying Consolidated Balance Sheets as of December 31, 2020 which represents collateral against the related Letter of Credit issued as part of this agreement. As of December 31, 2019, the $0.3 million in restricted cash is included in other long-term assets on the Consolidated Balance Sheet.
The restructured lease and sub-lease were deemed to be in-scope and thus subject to the requirements of Topic 842 and were evaluated for impairment in accordance with the asset impairment provisions of ASC 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 sublease income in future years as of December 31, 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 Topic 420, as has been done since the cease use date in 2017.
Due to the continued net losses, going concern, and restructuring actions discussed in Note 3, “Restructuring,” the Company also evaluated its Solon, Ohio operating lease right-of-use asset for potential impairment under Topic 360. As a result of this evaluation, the Company determined that the operating lease right-of-use asset for the Solon, Ohio operating lease was impaired upon the adoption of Topic 842. Therefore, the Company recorded an impairment of this right-of-use asset of approximately $0.2 million, with a corresponding offset to accumulated deficit as of January 1, 2019.
Components of the operating, restructured and finance lease costs recognized in net loss were as follows (in thousands):
For the years ended December 31,
 20202019
Operating lease cost (income)
Sub-lease income$(105)$(100)
Lease cost597 628 
Operating lease cost, net492 528 
Restructured lease cost (income)
Sub-lease income(272)(403)
Lease cost237 385 
Restructured lease income, net(35)(18)
Finance lease cost
Interest of lease liabilities— 1 
Finance lease cost, net— 1 
Total lease cost, net$457 $511 
Supplemental Consolidated Balance Sheet information related to the Company’s operating and finance leases are as follows (in thousands):
At December 31,
 20202019
Operating Leases
Operating lease right-of-use assets$794 $1,289 
Restructured lease right-of-use assets107 322 
Operating lease right-of-use assets, total901 1,611 
Operating lease liabilities916 1,480 
Restructured lease liabilities168 488 
Operating lease liabilities, total1,084 1,968 
Finance Leases
Property and equipment13 13 
Allowances for depreciation(9)(5)
Finance lease assets, net4 8 
Finance lease liabilities4 6 
Total finance lease liabilities$4 $6 

Future minimum lease payments required under operating, restructured and finance leases for each of the years 2021 through 2025 are as follows (in thousands):
Operating LeasesRestructured LeasesRestructured Leases Sublease PaymentsFinance Lease
2021$622 $170 $(136)$3 
2022329 — — 1 
202316 — — — 
20241 — — — 
2025— — — — 
Total future undiscounted lease payments968 170 (136)4 
Less imputed interest(52)(2)2 — 
Total lease obligations$916 $168 $(134)$4 

Supplemental cash flow information related to leases was as follows (in thousands):
Years ended December 31,
 20202019
Supplemental Cash Flow Information: 
Cash paid, net, for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$537 $536 
Operating cash flows from restructured leases$69 $87 
Financing cash flows from finance leases$3 $3 
Leases LEASESThe Company leases certain equipment, manufacturing, warehouse and office space under non-cancellable operating leases expiring through 2024 under which it is responsible for related maintenance, taxes and insurance. As of January 21, 2021, the terms of one of these equipment operating leases has been extended through 2026. In accordance with Topic 842, the related right-of-use asset and lease liability will be updated at the time of modification in January 2021. The Company has one finance lease containing a bargain purchase option upon expiration of 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 (“IBR”) of 7.25%, which was the Company’s borrowing rate on the revolving credit agreement signed on December 11, 2018. The weighted average remaining lease term for operating, restructured and finance leases is 1.6 years, 0.5 years, and 1.3 years, respectively.
The Company had two restructured leases with sub-lease components for the New York, New York and Arlington, Virginia offices that were closed in 2017. The New York, New York lease expires in 2021 and the Arlington, Virginia lease expired in September 2019. At the “cease use” date in 2017, the Company recorded the present value of the future minimum payments under the leases and costs that continue to be incurred with no economic benefit to the Company in accordance with Topic 420. The Company entered into sub-leases for both offices and included the estimated sub-lease payments as an offset to the remaining lease obligations, as required by Topic 420 at that time. In adopting Topic 842, the carrying value of the aforementioned net liabilities has been reclassified as a reduction of the restructured lease, right-of-use asset, which totaled $0.3 million as of January 1, 2019. As part of the lease agreement for the New York, New York office, there is $0.3 million in restricted cash in prepaid and other current assets on the accompanying Consolidated Balance Sheets as of December 31, 2020 which represents collateral against the related Letter of Credit issued as part of this agreement. As of December 31, 2019, the $0.3 million in restricted cash is included in other long-term assets on the Consolidated Balance Sheet.
The restructured lease and sub-lease were deemed to be in-scope and thus subject to the requirements of Topic 842 and were evaluated for impairment in accordance with the asset impairment provisions of ASC 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 sublease income in future years as of December 31, 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 Topic 420, as has been done since the cease use date in 2017.
Due to the continued net losses, going concern, and restructuring actions discussed in Note 3, “Restructuring,” the Company also evaluated its Solon, Ohio operating lease right-of-use asset for potential impairment under Topic 360. As a result of this evaluation, the Company determined that the operating lease right-of-use asset for the Solon, Ohio operating lease was impaired upon the adoption of Topic 842. Therefore, the Company recorded an impairment of this right-of-use asset of approximately $0.2 million, with a corresponding offset to accumulated deficit as of January 1, 2019.
Components of the operating, restructured and finance lease costs recognized in net loss were as follows (in thousands):
For the years ended December 31,
 20202019
Operating lease cost (income)
Sub-lease income$(105)$(100)
Lease cost597 628 
Operating lease cost, net492 528 
Restructured lease cost (income)
Sub-lease income(272)(403)
Lease cost237 385 
Restructured lease income, net(35)(18)
Finance lease cost
Interest of lease liabilities— 1 
Finance lease cost, net— 1 
Total lease cost, net$457 $511 
Supplemental Consolidated Balance Sheet information related to the Company’s operating and finance leases are as follows (in thousands):
At December 31,
 20202019
Operating Leases
Operating lease right-of-use assets$794 $1,289 
Restructured lease right-of-use assets107 322 
Operating lease right-of-use assets, total901 1,611 
Operating lease liabilities916 1,480 
Restructured lease liabilities168 488 
Operating lease liabilities, total1,084 1,968 
Finance Leases
Property and equipment13 13 
Allowances for depreciation(9)(5)
Finance lease assets, net4 8 
Finance lease liabilities4 6 
Total finance lease liabilities$4 $6 

Future minimum lease payments required under operating, restructured and finance leases for each of the years 2021 through 2025 are as follows (in thousands):
Operating LeasesRestructured LeasesRestructured Leases Sublease PaymentsFinance Lease
2021$622 $170 $(136)$3 
2022329 — — 1 
202316 — — — 
20241 — — — 
2025— — — — 
Total future undiscounted lease payments968 170 (136)4 
Less imputed interest(52)(2)2 — 
Total lease obligations$916 $168 $(134)$4 

Supplemental cash flow information related to leases was as follows (in thousands):
Years ended December 31,
 20202019
Supplemental Cash Flow Information: 
Cash paid, net, for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$537 $536 
Operating cash flows from restructured leases$69 $87 
Financing cash flows from finance leases$3 $3