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LEASES | 3 Months Ended
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Mar. 31, 2024
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. 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 (“ASC 842”), the related lease liability was remeasured and the right-of-use asset was adjusted 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 weighted average remaining lease term for operating leases is 3.25 years. Components of the operating lease costs recognized in net loss were as follows (in thousands):
|  |  | Three months ended March 31,
|  |  |  |  | 2024 |  | 2023
Operating lease cost |  |  |  |  |  |  |
Lease cost |  |  |  |  | $ | 97 |  |  | $ | 117 |
Operating lease cost, net |  |  |  |  | $ | 97 |  |  | $ | 117 |
Supplemental balance sheet information related to the Company’s operating leases as of March 31, 2024 and December 31, 2023 are as follows (in thousands):
| March 31, 2024 |  | December 31, 2023
Operating Leases |  |  |
Operating lease right-of-use assets | $ | 833 |  |  | $ | 899 |
Operating lease liabilities | $ | 968 |  |  | $ | 1,021 |
Future minimum lease payments required under operating leases for each of the 12-month rolling periods below in effect at March 31, 2024 are as follows (in thousands):
|  | Operating Leases |  |  |
April 2024 through March 2025 |  | $ | 376 |  |  |  |
April 2025 through March 2026 |  | 384 |  |  |  |
April 2026 through March 2027 |  | 391 |  |  |  |
April 2027 through March 2028 |  | 99 |  |  |  |
Total future undiscounted lease payments |  | 1,250 |  |  |  |
Less imputed interest |  | (282) |  |  |  |
Total lease obligations |  | $ | 968 |  |  |  |
Supplemental cash flow information related to leases for the three months ended March 31, 2024 and 2023, was as follows (in thousands):
|  |  | Three months ended March 31,
|  |  |  |  | 2024 |  | 2023
Supplemental cash flow information |  |  |  |  |  |  |
Cash paid, net, for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows from operating leases |  |  |  |  | $ | 94 |  |  | $ | 95 |
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. 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 (“ASC 842”), the related lease liability was remeasured and the right-of-use asset was adjusted 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 weighted average remaining lease term for operating leases is 3.25 years. Components of the operating lease costs recognized in net loss were as follows (in thousands):
|  |  | Three months ended March 31,
|  |  |  |  | 2024 |  | 2023
Operating lease cost |  |  |  |  |  |  |
Lease cost |  |  |  |  | $ | 97 |  |  | $ | 117 |
Operating lease cost, net |  |  |  |  | $ | 97 |  |  | $ | 117 |
Supplemental balance sheet information related to the Company’s operating leases as of March 31, 2024 and December 31, 2023 are as follows (in thousands):
| March 31, 2024 |  | December 31, 2023
Operating Leases |  |  |
Operating lease right-of-use assets | $ | 833 |  |  | $ | 899 |
Operating lease liabilities | $ | 968 |  |  | $ | 1,021 |
Future minimum lease payments required under operating leases for each of the 12-month rolling periods below in effect at March 31, 2024 are as follows (in thousands):
|  | Operating Leases |  |  |
April 2024 through March 2025 |  | $ | 376 |  |  |  |
April 2025 through March 2026 |  | 384 |  |  |  |
April 2026 through March 2027 |  | 391 |  |  |  |
April 2027 through March 2028 |  | 99 |  |  |  |
Total future undiscounted lease payments |  | 1,250 |  |  |  |
Less imputed interest |  | (282) |  |  |  |
Total lease obligations |  | $ | 968 |  |  |  |
Supplemental cash flow information related to leases for the three months ended March 31, 2024 and 2023, was as follows (in thousands):
|  |  | Three months ended March 31,
|  |  |  |  | 2024 |  | 2023
Supplemental cash flow information |  |  |  |  |  |  |
Cash paid, net, for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows from operating leases |  |  |  |  | $ | 94 |  |  | $ | 95 |

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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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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