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Leases | 9 Months Ended
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Sep. 30, 2024
Leases [Abstract] |
Leases | 13. Leases Lease Obligations The Company adopted ASC 842 on January 1, 2022, using the effective date transition method, which requires a cumulative-effect adjustment to the opening balance of retained earnings on the effective date. The Company has made certain assumptions and judgements when applying ASC 842 including the adoption of the package of practical expedients available for transition. The practical expedients allowed the Company to not reassess (i) whether expired or existing contracts contained leases, (ii) lease classification for expired or existing leases and (iii) previously capitalized initial direct costs. The Company also elected not to recognize right-of-use assets and lease liabilities for short-term leases (leases with a term of twelve months or less). Operating lease arrangements primarily consist of office and warehouse leases expiring at various years through 2028. The facility leases have original lease terms of two to seven years and contain options to extend the lease up to 5 years or terminate the lease. Options to extend are included in leased right-of-use assets and lease liabilities in the condensed consolidated balance sheet when the Company is reasonably certain it will renew the underlying leases. Since the implicit rate of such leases is unknown and the Company is not reasonably certain to renew its leases, the Company has elected to apply a collateralized incremental borrowing rate to facility leases on the original lease term in calculating the present value of future lease payments. As of September 30, 2024, the weighted average discount rate for operating leases was 9.49% and the weighted average remaining lease term for operating leases was 2.4 years, respectively. As of December 31, 2023, the weighted average discount rate for operating leases was 9.49% and the weighted average remaining lease term for operating leases was 4.42 years, respectively. The Company has entered into various short-term operating leases for office and warehouse space, with an initial term of twelve months or less. These short-term leases are not recorded on the Company’s condensed consolidated balance sheet. The components of lease expense and other information for the three and nine months ended September 30, 2024 and 2023 were as follows.
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |  |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |  |
|  | (in thousands) |  |  | (in thousands) |  |
Operating lease costs |  | $ | 122 |  |  | $ | 25 |  |  | $ | 282 |  |  | $ | 67 |  |
Short-term lease costs |  |  | 10 |  |  |  | 3 |  |  |  | 31 |  |  |  | 61 |  |
Total lease costs |  |  | 132 |  |  |  | 28 |  |  |  | 313 |  |  |  | 128 |  |
Other information: |  |  |  |  |  |  |  |  |  |  |  |  |
Cash paid for amounts included in the measurement of operating lease liability |  | $ | 122 |  |  | $ | 25 |  |  | $ | 282 |  |  | $ | 67 |  |
Right-of-use assets of $0.0 million and $0.3 million were obtained in exchange for lease liabilities during the nine months ended September 30, 2024 and 2023 respectively. Total right-of-use assets of $0.4 million and operating lease liabilities of $0.4 million were acquired in the Acquisition and recorded at fair value on the acquisition date. The following represents the Company’s minimum annual rental payments under operating leases for each of the next five years and thereafter:
Fiscal Year Ending December 31, |  | Operating |
|  | (in thousands) |
2024 (remaining) |  |  | 89 |
2025 |  |  | 282 |
2026 |  |  | 78 |
2027 |  |  | 78 |
2028 |  |  | 33 |
Thereafter |  |  | — |
Total future minimum lease payments |  |  | 560 |
Less: imputed interest |  |  | (48 | )
Present value of operating lease liability |  | $ | 512 |
Less: current portion of lease liability |  |  | 302 |
Non-current portion of lease liability |  |  | 210 |
Present value of operating lease liability |  | $ | 512 |

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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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