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Leases
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases Leases
The Company has operating leases primarily for corporate offices, vehicles, and certain equipment. Such leases do not require any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees. The Company determines if an arrangement is or contains a lease at inception.
Lease expense for operating lease payments is recognized on a straight-line basis over the term of the lease. Operating lease assets and liabilities are recognized based on the present value of lease payments over the lease term. Since most of the Company’s leases do not have a readily determinable implicit discount rate, the Company uses its incremental borrowing rate to calculate the present value of lease payments determined using the rate of interest that the Company would have to pay on collateralized or secured borrowing over a similar term. As a practical expedient, the Company has made an accounting policy election not to separate lease components from non-lease components in the event that the agreement contains both. The Company includes both the lease and non-lease components for purposes of calculating the right of use asset and related lease liability.
As of December 31, 2020, the Company does not have any leases classified as financing leases.
The Company subleases one of its leased industrial warehouse spaces. The sublease income from the facility offsets the lease expense associated with the facility. Sublease income for the facility is $0.1 million, $0, and $0 for the years ended December 31, 2020, 2019, and 2018, respectively, and is presented as a reduction to selling, general, and administrative expense on the consolidated statements of operations in those periods.
Supplemental balance sheet information related to operating leases is as follows (amounts in thousands, except lease term and discount rate):
December 31,
20202019
Assets
Right of use asset$3,623$3,397
Liabilities
Short term lease liability1,1761,168
Long term lease liability2,9602,919
Weighted-average remaining lease term (years) 4.4 years 3.1 years
Weighted-average discount rate10.0 %11.5 %
Information related to lease costs for operating leases are as follows (amounts in thousands):
Year ended December 31,
20202019
Operating lease cost$1,392 $1,469 
Amortization of leased assets983 947 
Rent expense for the year ended December 31, 2018, which was accounted for under ASC 840, Leases, was $1.5 million. This amount, as well as those included in the table above, are allocated among cost of sales, research and development and selling, general and administrative expenses in the consolidated statements of operations.
Maturities of operating lease liabilities are as follows (amounts in thousands):
Year ending December 31,Maturities
2021$1,537 
20221,566 
2023507 
2024339 
2025339 
Thereafter705 
Total lease payments4,993 
Less: imputed interest(857)
$4,136 
Certain lease agreements require the Company to return designated areas of leased space to its original condition upon termination of the lease agreement, for which the Company records an asset retirement obligation and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. In subsequent periods, the asset retirement obligation is accreted for the change in its present value and the capitalized asset is depreciated, both over the term of the associated lease agreement. Asset retirement obligations of $0.8 million and $0 of December 31, 2020 and 2019, respectively, are included under Other liabilities in the consolidated balance sheets.
Leases Leases
The Company has operating leases primarily for corporate offices, vehicles, and certain equipment. Such leases do not require any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees. The Company determines if an arrangement is or contains a lease at inception.
Lease expense for operating lease payments is recognized on a straight-line basis over the term of the lease. Operating lease assets and liabilities are recognized based on the present value of lease payments over the lease term. Since most of the Company’s leases do not have a readily determinable implicit discount rate, the Company uses its incremental borrowing rate to calculate the present value of lease payments determined using the rate of interest that the Company would have to pay on collateralized or secured borrowing over a similar term. As a practical expedient, the Company has made an accounting policy election not to separate lease components from non-lease components in the event that the agreement contains both. The Company includes both the lease and non-lease components for purposes of calculating the right of use asset and related lease liability.
As of December 31, 2020, the Company does not have any leases classified as financing leases.
The Company subleases one of its leased industrial warehouse spaces. The sublease income from the facility offsets the lease expense associated with the facility. Sublease income for the facility is $0.1 million, $0, and $0 for the years ended December 31, 2020, 2019, and 2018, respectively, and is presented as a reduction to selling, general, and administrative expense on the consolidated statements of operations in those periods.
Supplemental balance sheet information related to operating leases is as follows (amounts in thousands, except lease term and discount rate):
December 31,
20202019
Assets
Right of use asset$3,623$3,397
Liabilities
Short term lease liability1,1761,168
Long term lease liability2,9602,919
Weighted-average remaining lease term (years) 4.4 years 3.1 years
Weighted-average discount rate10.0 %11.5 %
Information related to lease costs for operating leases are as follows (amounts in thousands):
Year ended December 31,
20202019
Operating lease cost$1,392 $1,469 
Amortization of leased assets983 947 
Rent expense for the year ended December 31, 2018, which was accounted for under ASC 840, Leases, was $1.5 million. This amount, as well as those included in the table above, are allocated among cost of sales, research and development and selling, general and administrative expenses in the consolidated statements of operations.
Maturities of operating lease liabilities are as follows (amounts in thousands):
Year ending December 31,Maturities
2021$1,537 
20221,566 
2023507 
2024339 
2025339 
Thereafter705 
Total lease payments4,993 
Less: imputed interest(857)
$4,136 
Certain lease agreements require the Company to return designated areas of leased space to its original condition upon termination of the lease agreement, for which the Company records an asset retirement obligation and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. In subsequent periods, the asset retirement obligation is accreted for the change in its present value and the capitalized asset is depreciated, both over the term of the associated lease agreement. Asset retirement obligations of $0.8 million and $0 of December 31, 2020 and 2019, respectively, are included under Other liabilities in the consolidated balance sheets.