XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.23.1

Leases | 3 Months Ended
--- | ---
Mar. 31, 2023
Leases [Abstract] |
Leases | LEASES The Company leases certain equipment, manufacturing, warehouse and office space under non-cancellable operating leases with expirations through 2027 under which it is responsible for related maintenance, taxes and insurance. The Company had one finance lease on a forklift containing a bargain purchase option, which was exercised in July 2022. As of March 25, 2022, the terms of our real estate operating lease have been modified beginning July 1, 2022 and extended through 2027. In accordance with ASC 842, Leases (“Topic 842”), the related lease liability was remeasured and the right-of-use asset was adjusted for each lease at the time of modification. The present value of the lease obligations for the lease was calculated using an incremental borrowing rate of 16.96%, which was the Company’s blended borrowing rates (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 6, “Debt”) and Factors Southwest L.L.C. (as described below in Note 6, “Debt”). The present value of the other remaining lease obligations continues to be 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 leases is 4.2 years. Components of the operating lease costs recognized in net loss were as follows (in thousands):
|  |  | Three months ended March 31,
|  |  |  |  | 2023 |  | 2022
Operating lease cost (income) |  |  |  |  |  |  |
Sub-lease income |  |  |  |  | $ | — |  |  | $ | (25) |
Lease cost |  |  |  |  | 117 |  |  | 132 |
Operating lease cost, net |  |  |  |  | $ | 117 |  |  | $ | 107 |
Supplemental balance sheet information related to the Company’s operating leases as of March 31, 2023 and December 31, 2022 are as follows (in thousands):
| March 31, 2023 |  | December 31, 2022
Operating Leases |  |  |
Operating lease right-of-use assets | $ | 1,111 |  |  | $ | 1,180 |
Operating lease liabilities | $ | 1,180 |  |  | $ | 1,227 |
Finance Leases |  |  |
Property and equipment | 13 |  |  | 13 |
Allowances for depreciation | (13) |  |  | (13) |
Finance lease assets, net | $ | — |  |  | $ | — |
Future minimum lease payments required under operating leases for each of the 12-month rolling periods below in effect at March 31, 2023 are as follows (in thousands):
|  | Operating Leases |  |  |
April 2023 to March 2024 |  | $ | 385 |  |  |  |
April 2024 to March 2025 |  | 379 |  |  |  |
April 2025 to March 2026 |  | 387 |  |  |  |
April 2026 to March 2027 |  | 391 |  |  |  |
April 2027 to March 2028 |  | 99 |  |  |  |
Total future undiscounted lease payments |  | 1,641 |  |  |  |
Less imputed interest |  | (461) |  |  |  |
Total lease obligations |  | $ | 1,180 |  |  |  |
Supplemental cash flow information related to leases for the three months ended March 31, 2023 and 2022, was as follows (in thousands):
|  |  | Three months ended March 31,
|  |  |  |  | 2023 |  | 2022
Supplemental cash flow information |  |  |  |  |  |  |
Cash paid, net, for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows from operating leases |  |  |  |  | $ | 95 |  |  | $ | 136 |
Financing cash flows from finance leases |  |  |  |  | $ | — |  |  | $ | 1 |
Leases | LEASES The Company leases certain equipment, manufacturing, warehouse and office space under non-cancellable operating leases with expirations through 2027 under which it is responsible for related maintenance, taxes and insurance. The Company had one finance lease on a forklift containing a bargain purchase option, which was exercised in July 2022. As of March 25, 2022, the terms of our real estate operating lease have been modified beginning July 1, 2022 and extended through 2027. In accordance with ASC 842, Leases (“Topic 842”), the related lease liability was remeasured and the right-of-use asset was adjusted for each lease at the time of modification. The present value of the lease obligations for the lease was calculated using an incremental borrowing rate of 16.96%, which was the Company’s blended borrowing rates (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 6, “Debt”) and Factors Southwest L.L.C. (as described below in Note 6, “Debt”). The present value of the other remaining lease obligations continues to be 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 leases is 4.2 years. Components of the operating lease costs recognized in net loss were as follows (in thousands):
|  |  | Three months ended March 31,
|  |  |  |  | 2023 |  | 2022
Operating lease cost (income) |  |  |  |  |  |  |
Sub-lease income |  |  |  |  | $ | — |  |  | $ | (25) |
Lease cost |  |  |  |  | 117 |  |  | 132 |
Operating lease cost, net |  |  |  |  | $ | 117 |  |  | $ | 107 |
Supplemental balance sheet information related to the Company’s operating leases as of March 31, 2023 and December 31, 2022 are as follows (in thousands):
| March 31, 2023 |  | December 31, 2022
Operating Leases |  |  |
Operating lease right-of-use assets | $ | 1,111 |  |  | $ | 1,180 |
Operating lease liabilities | $ | 1,180 |  |  | $ | 1,227 |
Finance Leases |  |  |
Property and equipment | 13 |  |  | 13 |
Allowances for depreciation | (13) |  |  | (13) |
Finance lease assets, net | $ | — |  |  | $ | — |
Future minimum lease payments required under operating leases for each of the 12-month rolling periods below in effect at March 31, 2023 are as follows (in thousands):
|  | Operating Leases |  |  |
April 2023 to March 2024 |  | $ | 385 |  |  |  |
April 2024 to March 2025 |  | 379 |  |  |  |
April 2025 to March 2026 |  | 387 |  |  |  |
April 2026 to March 2027 |  | 391 |  |  |  |
April 2027 to March 2028 |  | 99 |  |  |  |
Total future undiscounted lease payments |  | 1,641 |  |  |  |
Less imputed interest |  | (461) |  |  |  |
Total lease obligations |  | $ | 1,180 |  |  |  |
Supplemental cash flow information related to leases for the three months ended March 31, 2023 and 2022, was as follows (in thousands):
|  |  | Three months ended March 31,
|  |  |  |  | 2023 |  | 2022
Supplemental cash flow information |  |  |  |  |  |  |
Cash paid, net, for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows from operating leases |  |  |  |  | $ | 95 |  |  | $ | 136 |
Financing cash flows from finance leases |  |  |  |  | $ | — |  |  | $ | 1 |

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 https://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 https://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