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Leases | 12 Months Ended
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Dec. 31, 2022
Leases [Abstract] |
Leases | LEASESThe Company leases certain equipment, manufacturing, warehouse and office space under non-cancellable operating leases expiring through 2027 under which it is responsible for related maintenance, taxes and insurance. The Company had one equipment finance lease containing a bargain purchase option which was exercised in July 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 the equipment operating leases was extended through 2026. Additionally, as of March 25, 2022, the Company extended its headquarters real estate operating lease for manufacturing, warehouse and office space commencing July 1, 2022 to reflect a smaller footprint at reduced costs. In accordance with “Topic 842”), as a result of the extensions, the related lease liabilities were remeasured and the right-of-use assets and corresponding lease liabilities were adjusted for each lease at the time of modification. The present value of the lease obligation was calculated using an incremental borrowing rate of 15.93% for the equipment lease and 16.96% for the real estate lease, 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. 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 revolving lines of credit at the time the leases were entered into. The weighted average remaining lease term for operating leases is 4.4 years. Components of the operating, restructured and finance lease costs recognized in net loss were as follows (in thousands):
| For the years ended December 31,
Components of leases recognized in net income (loss): | 2022 |  | 2021
Operating lease cost (income) |  |  |
Sub-lease income | $ | (90) |  |  | $ | (112) |
Lease cost | 501 |  |  | 558 |
Operating lease cost, net | 411 |  |  | 446 |
Restructured lease cost (income) |  |  |
Sub-lease income | — |  |  | (136) |
Lease cost | — |  |  | 110 |
Restructured lease income, net | — |  |  | (26) |
Finance lease cost |  |  |
Interest of lease liabilities | 1 |  |  | — |
Finance lease cost, net | 1 |  |  | — |
Total lease cost, net | $ | 412 |  |  | $ | 420 |
Supplemental Consolidated Balance Sheet information related to the Company’s operating and finance leases are as follows (in thousands):
| At December 31, |
| 2022 |  | 2021 |
Operating Leases |  |  |  |
Operating lease right-of-use assets | $ | 1,180 |  |  | $ | 292 |  |
Operating lease liabilities | 1,227 |  |  | 351 |  |
Finance Leases |  |  |  |
Property and equipment | 13 |  |  | 13 |  |
Allowances for depreciation | (13) |  |  | (12) |  |
Finance lease assets, net | — |  |  | 1 |  |
Finance lease liabilities | — |  |  | 1 |  |
Total finance lease liabilities | $ | — |  |  | $ | 1 |  |
Future minimum lease payments required under operating and finance leases for each of the years 2023 through 2027 are as follows (in thousands):
| Operating Leases |  |  |
Jan 2023 to Dec 2023 | $ | 386 |  |  |  |
Jan 2024 to Dec 2024 | 379 |  |  |  |
Jan 2025 to Dec 2025 | 385 |  |  |  |
Jan 2026 to Dec 2026 | 390 |  |  |  |
Jan 2027 to Dec 2027 | 197 |  |  |  |
Total future undiscounted lease payments | 1,737 |  |  |  |
Less imputed interest | (510) |  |  |  |
Total lease obligations | $ | 1,227 |  |  |  |
Supplemental cash flow information related to leases was as follows (in thousands):
| Years ended December 31, |
| 2022 |  | 2021 |
Supplemental Cash Flow Information: |  |  |  |
Cash paid, net, for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from operating leases | $ | 423 |  |  | $ | 532 |  |
Operating cash flows from restructured leases | $ | — |  |  | $ | 35 |  |
Financing cash flows from finance leases | $ | 1 |  |  | $ | 3 |  |
Leases | LEASESThe Company leases certain equipment, manufacturing, warehouse and office space under non-cancellable operating leases expiring through 2027 under which it is responsible for related maintenance, taxes and insurance. The Company had one equipment finance lease containing a bargain purchase option which was exercised in July 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 the equipment operating leases was extended through 2026. Additionally, as of March 25, 2022, the Company extended its headquarters real estate operating lease for manufacturing, warehouse and office space commencing July 1, 2022 to reflect a smaller footprint at reduced costs. In accordance with “Topic 842”), as a result of the extensions, the related lease liabilities were remeasured and the right-of-use assets and corresponding lease liabilities were adjusted for each lease at the time of modification. The present value of the lease obligation was calculated using an incremental borrowing rate of 15.93% for the equipment lease and 16.96% for the real estate lease, 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. 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 revolving lines of credit at the time the leases were entered into. The weighted average remaining lease term for operating leases is 4.4 years. Components of the operating, restructured and finance lease costs recognized in net loss were as follows (in thousands):
| For the years ended December 31,
Components of leases recognized in net income (loss): | 2022 |  | 2021
Operating lease cost (income) |  |  |
Sub-lease income | $ | (90) |  |  | $ | (112) |
Lease cost | 501 |  |  | 558 |
Operating lease cost, net | 411 |  |  | 446 |
Restructured lease cost (income) |  |  |
Sub-lease income | — |  |  | (136) |
Lease cost | — |  |  | 110 |
Restructured lease income, net | — |  |  | (26) |
Finance lease cost |  |  |
Interest of lease liabilities | 1 |  |  | — |
Finance lease cost, net | 1 |  |  | — |
Total lease cost, net | $ | 412 |  |  | $ | 420 |
Supplemental Consolidated Balance Sheet information related to the Company’s operating and finance leases are as follows (in thousands):
| At December 31, |
| 2022 |  | 2021 |
Operating Leases |  |  |  |
Operating lease right-of-use assets | $ | 1,180 |  |  | $ | 292 |  |
Operating lease liabilities | 1,227 |  |  | 351 |  |
Finance Leases |  |  |  |
Property and equipment | 13 |  |  | 13 |  |
Allowances for depreciation | (13) |  |  | (12) |  |
Finance lease assets, net | — |  |  | 1 |  |
Finance lease liabilities | — |  |  | 1 |  |
Total finance lease liabilities | $ | — |  |  | $ | 1 |  |
Future minimum lease payments required under operating and finance leases for each of the years 2023 through 2027 are as follows (in thousands):
| Operating Leases |  |  |
Jan 2023 to Dec 2023 | $ | 386 |  |  |  |
Jan 2024 to Dec 2024 | 379 |  |  |  |
Jan 2025 to Dec 2025 | 385 |  |  |  |
Jan 2026 to Dec 2026 | 390 |  |  |  |
Jan 2027 to Dec 2027 | 197 |  |  |  |
Total future undiscounted lease payments | 1,737 |  |  |  |
Less imputed interest | (510) |  |  |  |
Total lease obligations | $ | 1,227 |  |  |  |
Supplemental cash flow information related to leases was as follows (in thousands):
| Years ended December 31, |
| 2022 |  | 2021 |
Supplemental Cash Flow Information: |  |  |  |
Cash paid, net, for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from operating leases | $ | 423 |  |  | $ | 532 |  |
Operating cash flows from restructured leases | $ | — |  |  | $ | 35 |  |
Financing cash flows from finance leases | $ | 1 |  |  | $ | 3 |  |

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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 https://asc.fasb.org/subtopic&trid=77888251 + Details
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- 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
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