Commitments and Contingencies

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 9 – Commitments and Contingencies

Leases

The Company leases certain real estate, factory, and office equipment under non-cancellable operating leases at various dates through January 2024. Lease costs and cash paid for the three-month period ended September 30, 2021 were $199 and $200, respectively. Lease costs and cash paid for the three-month period ended September 30, 2020 were $186 and $187, respectively. Lease costs and cash paid for the nine-month period ended September 30, 2021 were $590 and $590, respectively. Lease costs and cash paid for the nine-month period ended September 30, 2020 were $563 and $562, respectively.

Maturities of the lease liabilities are as follows:

For the year ended December 31,	Amount
Amount remaining year ending December 31, 2021	$	229
2022		922
2023		943
2024		87
Thereafter		-
Total		2,181
Less present value discount		165
Total operating lease liabilities	$	2,016

As of September 30, 2021, the weighted average remaining lease term is 2.58 years and the weighted average discount rate used to determine the operating lease liabilities was 6.5%.

Promissory Note

In connection with the fulfillment of certain of the Company’s purchase orders, the Company is financing expediting fees charged in connection with the purchase orders by delivering a promissory note (the “Note”) to the supplier of the goods, in the principal amount of approximately $630. The Note is unsecured and has an interest rate of 12% per annum. The Company is obligated to repay the principal balance of the note beginning in September 2021 and continuing thereafter for an additional five consecutive monthly installments on the 15^th day of each successive calendar month, as follows: September 2021, $100, October 2021, $100, November 2021, $100, December 2021, $100, January 2022, $100 and February 2022, $140. Accrued interest will be paid concurrently with each principal installment. Upon a default under the Note, including the non-payment of principal or interest, the Company’s obligations may be accelerated and the Note holder may pursue its rights under the Note and under applicable law.

Litigation

The Company from time to time is a party to certain proceedings incidental to the ordinary course of its business, none of which, in the opinion of management, is likely to have a material adverse effect on the Company’s business, financial condition, results of operations, or cash flows.