XML 28 R17.htm IDEA: XBRL DOCUMENT

Leases

6 Months Ended

Jun. 30, 2021

10. LEASES

Operating Leases

The Company has operating leases for office, manufacturing and warehouse space, office equipment, and vehicles.

As part of the SKS business acquisition on February 25, 2021, the Company assumed a lease of flexible office space with a remaining term of approximately 28 months that will expire on July 1, 2023. Monthly payments are $16 thousand during the remaining life of the lease. The lease did not include an implicit rate of return; therefore, the Company used an incremental borrowing rate based on other leases with similar terms.

As part of the SKS business acquisition on February 25, 2021, the Company assumed vehicle leases with a remaining weighted average term of approximately 11 months. Monthly average payments are $2 thousand during the remaining life of the leases. The leases included an implicit rate of return from 5.41% to 6% and no renewal options.

In April 2021, the Company entered into a 60-month office equipment lease with monthly payments and no renewal options. The lease did not include an implicit rate of return; therefore, the Company used an incremental borrowing rate based on other leases with similar terms.

In April 2021, a subsidiary of the Company entered into several vehicle leases with approximately 36-month terms. Monthly payments range from $1 thousand to $2 thousand. Each lease had an implicit rate of 6.0% and no renewal options.

In May 2021, a subsidiary of the Company entered into an amendment to its existing facility lease to extend the expiration date through June 20, 2022 and to increase the annual base to $12 thousand per month. The lease did not include an implicit rate of return; therefore, the Company used an incremental borrowing rate based on other leases with similar terms. The modification resulted in additional right-of-use asset and lease liability of $0.12 million

As part of the RVision business acquisition on April 1, 2021, the Company assumed a lease of office space with a remaining term of approximately 35 months that will expire on March 31, 2024. Monthly payments ae $7 thousand during the remaining life of the lease. The lease did not include an implicit rate of return; therefore, the Company used an incremental borrowing rate based on other leases with similar terms.

Other information related to the Company’s operating leases are as follows:

(Amounts in thousands)	For the six months ended June 30, 2021
Operating lease ROU Asset – December 31, 2020	$	2,725
Increase		1,217
Decrease		—
Amortization		(495	)
Operating lease ROU Asset – June 30, 2021	$	3,447

Operating lease liability – December 31, 2020	$	2,885
Increase		1,217
Decrease		(30	)
Amortization		(453	)
Operating lease liability – June 30, 2021	$	3,619

Operating lease liability – short term	$	1,106
Operating lease liability – long term		2,513
Operating lease liability – total	$	3,619

Operating lease cost	$	595
Variable lease cost	$	—
Short-term lease cost	$	102

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	598

The following table presents the weighted-average remaining lease term and weighted average discount rates related to the Company’s operating leases as of June 30, 2021 and December 31, 2020, respectively:

	June 30, 2021			December 31, 2020
Weighted average remaining lease term		3.45 years			4.19 years
Weighted average discount rate		6.0	%		5.95	%

The table below reconciles the fixed component of the undiscounted cash flows for each of the first five years and the total remaining years to the lease liabilities recorded on the Condensed Consolidated Balance Sheet as of June 30, 2021:

(Amounts in thousands)	Operating Leases
Remainder of 2021	$	675
2022		1,179
2023		1,048
2024		707
2025		384
Thereafter		3
Total minimum lease payments		3,996
Less: effect of discounting		(377	)
Present value of future minimum lease payments		3,619
Less: current obligations under leases		(1,106	)
Long-term lease obligations	$	2,513

Finance Leases

The Company has finance leases for certain manufacturing and office equipment.

Information related to the Company’s finance leases are as follows:

(Amounts in thousands)	For the six months ended June 30, 2021
Finance lease ROU Asset – December 31, 2020	$	68
Increase		—
Amortization		(12	)
Finance lease ROU Asset – June 30, 2021	$	56

Finance lease liability – December 31, 2020	$	55
Increase		—
Interest accretion		1
Payment		(30	)
Operating lease liability – June 30, 2021	$	26

Finance lease liability – short term	$	26
Finance lease liability – long term		—
Finance lease liability – total	$	26

The following table presents the weighted-average remaining lease term and weighted average discount rates related to the Company’s finance leases as of June 30, 2021 and December 31, 2020, respectively:

	June 30, 2021			December 31, 2020
Weighted average remaining lease term		0.75 years			1.10 years
Weighted average discount rate		7.20	%		3.91	%

The table below reconciles the fixed component of the undiscounted cash flows for each of the first five years and the total remaining years to the finance lease liabilities recorded on the Condensed Consolidated Balance Sheet as of June 30, 2021:

(Amounts in thousands)	Finance Leases
Remainder of 2021	$	19
2022		8
Thereafter		—
Total minimum lease payments		27
Less: effect of discounting		(1	)
Present value of future minimum lease payments		26
Less: current obligations under leases		(26	)
Long-term lease obligations	$	—