XML 24 R14.htm IDEA: XBRL DOCUMENT
v3.21.2

Leases | 9 Months Ended
--- | ---
Sep. 30, 2021
Leases [Abstract] |
Leases | LEASES The Company leases certain equipment, manufacturing, warehouse and office space under non-cancellable operating leases with expirations through 2026 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. As of January 21, 2021, the terms of one of these equipment operating leases has been extended through 2026. In accordance with Accounting Standard Codification 842, Leases (“Topic 842”), the related right-of-use asset and lease liability was updated at the time of modification in January 2021. The present value of the lease obligation for this lease was calculated using an incremental borrowing rate of 15.93%, which was the Company’s blended borrowing rate (including interest, annual facility fees, collateral management fees, bank fees and other miscellaneous lender fees) on its revolving lines of credit with Crossroads Financial Group, LLC (as described below in Note 7, “Debt”) and Factors Southwest L.L.C. (as described below in Note 7, “Debt”). The present value of the remaining lease obligation was calculated using an incremental borrowing rate of 7.25% (which excludes the annual facility fee and other lender fees), 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 and finance leases is 1.4 years and 0.6 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 expired in June 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 December 31, 2020, which represented collateral against the related letter of credit issued as part of this agreement. Per the terms of the lease agreement, the restrictions on the cash were lifted in September 2021 and the cash was returned to the Company. 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 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 December 31, 2020. The Company continued to carry certain immaterial operating expenses associated with this lease as restructuring liabilities and continued 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 4, “Leases,” included under Item 8, “Financial Statements and Supplementary Data,” of our 2020 Annual Report. There were no finance lease costs recognized in net loss for the three and nine months ended September 30, 2021 and 2020. Components of the operating and restructured lease costs recognized in net loss for the three and nine months ended September 30, 2021 and 2020, were as follows (in thousands):
| Three months ended September 30, |  | Nine months ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Operating lease cost (income) |  |  |  |  |  |  |
Sub-lease income | $ | (25) |  |  | $ | (26) |  |  | $ | (87) |  |  | $ | (80) |
Lease cost | 139 |  |  | 148 |  |  | 423 |  |  | 451 |
Operating lease cost, net | 114 |  |  | 122 |  |  | 336 |  |  | 371 |
Restructured lease cost (income) |  |  |  |  |  |  |
Sub-lease income | — |  |  | (68) |  |  | (136) |  |  | (204) |
Lease cost | — |  |  | 59 |  |  | 109 |  |  | 180 |
Restructured lease income, net | — |  |  | (9) |  |  | (27) |  |  | (24) |
Total lease cost, net | $ | 114 |  |  | $ | 113 |  |  | $ | 309 |  |  | $ | 347 |
Supplemental balance sheet information related to the Company’s operating and finance leases as of September 30, 2021 and December 31, 2020 are as follows (in thousands):
| September 30, 2021 |  | December 31, 2020
Operating Leases |  |  |
Operating lease right-of-use assets | $ | 419 |  |  | $ | 794 |
Restructured lease right-of-use assets | — |  |  | 107 |
Operating lease right-of-use assets, total | 419 |  |  | 901 |
Operating lease liabilities | 505 |  |  | 916 |
Restructured lease liabilities | — |  |  | 168 |
Operating lease liabilities, total | 505 |  |  | 1,084 |
Finance Leases |  |  |
Property and equipment | 13 |  |  | 13 |
Allowances for depreciation | (11) |  |  | (9) |
Finance lease assets, net | 2 |  |  | 4 |
Finance lease liabilities | 1 |  |  | 4 |
Total finance lease liabilities | $ | 1 |  |  | $ | 4 |
Future minimum lease payments required under operating and finance leases for each of the 12-month rolling periods below in effect at September 30, 2021 are as follows (in thousands):
|  | Operating Leases |  |  | Finance Lease
October 2021 to September 2022 |  | $ | 488 |  |  |  | $ | 1 |
October 2022 to September 2023 |  | 19 |  |  |  | — |
October 2023 to September 2024 |  | 8 |  |  |  | — |
October 2024 to September 2025 |  | 3 |  |  |  | — |
October 2025 to September 2026 |  | 2 |  |  |  | — |
Total future undiscounted lease payments |  | 520 |  |  |  | 1 |
Less imputed interest |  | (15) |  |  |  | — |
Total lease obligations |  | $ | 505 |  |  |  | $ | 1 |
Supplemental cash flow information related to leases for the three and nine months ended September 30, 2021 and 2020, was as follows (in thousands):
| Three months ended September 30, |  | Nine months ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Supplemental cash flow information |  |  |  |  |  |  |
Cash paid, net, for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows from operating leases | $ | 161 |  |  | $ | 134 |  |  | $ | 421 |  |  | $ | 401 |
Operating cash flows from restructured leases | $ | — |  |  | $ | 17 |  |  | $ | 35 |  |  | $ | 52 |
Financing cash flows from finance leases | $ | 1 |  |  | $ | 1 |  |  | $ | 3 |  |  | $ | 3 |
Leases | LEASES The Company leases certain equipment, manufacturing, warehouse and office space under non-cancellable operating leases with expirations through 2026 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. As of January 21, 2021, the terms of one of these equipment operating leases has been extended through 2026. In accordance with Accounting Standard Codification 842, Leases (“Topic 842”), the related right-of-use asset and lease liability was updated at the time of modification in January 2021. The present value of the lease obligation for this lease was calculated using an incremental borrowing rate of 15.93%, which was the Company’s blended borrowing rate (including interest, annual facility fees, collateral management fees, bank fees and other miscellaneous lender fees) on its revolving lines of credit with Crossroads Financial Group, LLC (as described below in Note 7, “Debt”) and Factors Southwest L.L.C. (as described below in Note 7, “Debt”). The present value of the remaining lease obligation was calculated using an incremental borrowing rate of 7.25% (which excludes the annual facility fee and other lender fees), 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 and finance leases is 1.4 years and 0.6 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 expired in June 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 December 31, 2020, which represented collateral against the related letter of credit issued as part of this agreement. Per the terms of the lease agreement, the restrictions on the cash were lifted in September 2021 and the cash was returned to the Company. 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 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 December 31, 2020. The Company continued to carry certain immaterial operating expenses associated with this lease as restructuring liabilities and continued 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 4, “Leases,” included under Item 8, “Financial Statements and Supplementary Data,” of our 2020 Annual Report. There were no finance lease costs recognized in net loss for the three and nine months ended September 30, 2021 and 2020. Components of the operating and restructured lease costs recognized in net loss for the three and nine months ended September 30, 2021 and 2020, were as follows (in thousands):
| Three months ended September 30, |  | Nine months ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Operating lease cost (income) |  |  |  |  |  |  |
Sub-lease income | $ | (25) |  |  | $ | (26) |  |  | $ | (87) |  |  | $ | (80) |
Lease cost | 139 |  |  | 148 |  |  | 423 |  |  | 451 |
Operating lease cost, net | 114 |  |  | 122 |  |  | 336 |  |  | 371 |
Restructured lease cost (income) |  |  |  |  |  |  |
Sub-lease income | — |  |  | (68) |  |  | (136) |  |  | (204) |
Lease cost | — |  |  | 59 |  |  | 109 |  |  | 180 |
Restructured lease income, net | — |  |  | (9) |  |  | (27) |  |  | (24) |
Total lease cost, net | $ | 114 |  |  | $ | 113 |  |  | $ | 309 |  |  | $ | 347 |
Supplemental balance sheet information related to the Company’s operating and finance leases as of September 30, 2021 and December 31, 2020 are as follows (in thousands):
| September 30, 2021 |  | December 31, 2020
Operating Leases |  |  |
Operating lease right-of-use assets | $ | 419 |  |  | $ | 794 |
Restructured lease right-of-use assets | — |  |  | 107 |
Operating lease right-of-use assets, total | 419 |  |  | 901 |
Operating lease liabilities | 505 |  |  | 916 |
Restructured lease liabilities | — |  |  | 168 |
Operating lease liabilities, total | 505 |  |  | 1,084 |
Finance Leases |  |  |
Property and equipment | 13 |  |  | 13 |
Allowances for depreciation | (11) |  |  | (9) |
Finance lease assets, net | 2 |  |  | 4 |
Finance lease liabilities | 1 |  |  | 4 |
Total finance lease liabilities | $ | 1 |  |  | $ | 4 |
Future minimum lease payments required under operating and finance leases for each of the 12-month rolling periods below in effect at September 30, 2021 are as follows (in thousands):
|  | Operating Leases |  |  | Finance Lease
October 2021 to September 2022 |  | $ | 488 |  |  |  | $ | 1 |
October 2022 to September 2023 |  | 19 |  |  |  | — |
October 2023 to September 2024 |  | 8 |  |  |  | — |
October 2024 to September 2025 |  | 3 |  |  |  | — |
October 2025 to September 2026 |  | 2 |  |  |  | — |
Total future undiscounted lease payments |  | 520 |  |  |  | 1 |
Less imputed interest |  | (15) |  |  |  | — |
Total lease obligations |  | $ | 505 |  |  |  | $ | 1 |
Supplemental cash flow information related to leases for the three and nine months ended September 30, 2021 and 2020, was as follows (in thousands):
| Three months ended September 30, |  | Nine months ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Supplemental cash flow information |  |  |  |  |  |  |
Cash paid, net, for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows from operating leases | $ | 161 |  |  | $ | 134 |  |  | $ | 421 |  |  | $ | 401 |
Operating cash flows from restructured leases | $ | — |  |  | $ | 17 |  |  | $ | 35 |  |  | $ | 52 |
Financing cash flows from finance leases | $ | 1 |  |  | $ | 1 |  |  | $ | 3 |  |  | $ | 3 |

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 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
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
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 http://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