Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

Leases

The Company has leases for corporate offices, manufacturing facilities, vehicles, and certain equipment. Such leases do not require any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees.

Supplemental balance sheet information related to the Company’s leases, including the financial statement caption in which the amounts are presented, is as follows (amounts in thousands, except lease term and discount rate):

	Operating Leases						Finance Leases
	December 31,						December 31,
	2022			2021			2022			2021
Assets
Right of use asset	$	3,400		$	4,696		$	—		$	—
Property and equipment, net	—			—			98			145
Total assets	$	3,400		$	4,696		$	98		$	145
Liabilities
Other current liabilities	$	1,391		$	1,203		$	49		$	45
Other liabilities	2,381			3,812			57			106
Total liabilities	$	3,772		$	5,015		$	106		$	151
Weighted-average remaining lease term (years)	2.8			4.0			2.1			3.1
Weighted-average discount rate	8.3		%	8.4		%	8.3		%	8.3		%

Information related to lease costs are as follows (amounts in thousands):

	Year Ended December 31,
	2022		2021		2020
Operating lease cost	$	1,620	$	1,327	$	1,392
Amortization of finance lease ROU assets	47		43		—
Interest expense on finance lease liabilities	10		13		—

Maturities of lease liabilities are as follows (amounts in thousands):

Year Ending December 31,	Operating Leases		Finance Leases		Total
2023	$	1,638	$	55	$	1,693
2024	1,618		55		1,673
2025	506		5		511
2026	419		—		419
2027	35		—		35
Thereafter	—		—		—
Total lease payments	4,216		115		4,331
Less: imputed interest	(444)		(9)		(453)
Lease liability	$	3,772	$	106	$	3,878

Asset Retirement Obligations

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 $1.2 million and $1.0 million are included in other liabilities in the consolidated balance sheets as of December 31, 2022 and 2021, respectively.

Sublease

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 was $0.1 million for each of the years ended December 31, 2022, 2021, and 2020, respectively, and is presented as a reduction to selling, general, and administrative expense on the consolidated statements of operations in those periods.

Leases

Leases

The Company has leases for corporate offices, manufacturing facilities, vehicles, and certain equipment. Such leases do not require any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees.

Supplemental balance sheet information related to the Company’s leases, including the financial statement caption in which the amounts are presented, is as follows (amounts in thousands, except lease term and discount rate):

	Operating Leases						Finance Leases
	December 31,						December 31,
	2022			2021			2022			2021
Assets
Right of use asset	$	3,400		$	4,696		$	—		$	—
Property and equipment, net	—			—			98			145
Total assets	$	3,400		$	4,696		$	98		$	145
Liabilities
Other current liabilities	$	1,391		$	1,203		$	49		$	45
Other liabilities	2,381			3,812			57			106
Total liabilities	$	3,772		$	5,015		$	106		$	151
Weighted-average remaining lease term (years)	2.8			4.0			2.1			3.1
Weighted-average discount rate	8.3		%	8.4		%	8.3		%	8.3		%

Information related to lease costs are as follows (amounts in thousands):

	Year Ended December 31,
	2022		2021		2020
Operating lease cost	$	1,620	$	1,327	$	1,392
Amortization of finance lease ROU assets	47		43		—
Interest expense on finance lease liabilities	10		13		—

Maturities of lease liabilities are as follows (amounts in thousands):

Year Ending December 31,	Operating Leases		Finance Leases		Total
2023	$	1,638	$	55	$	1,693
2024	1,618		55		1,673
2025	506		5		511
2026	419		—		419
2027	35		—		35
Thereafter	—		—		—
Total lease payments	4,216		115		4,331
Less: imputed interest	(444)		(9)		(453)
Lease liability	$	3,772	$	106	$	3,878

Asset Retirement Obligations

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 $1.2 million and $1.0 million are included in other liabilities in the consolidated balance sheets as of December 31, 2022 and 2021, respectively.

Sublease

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 was $0.1 million for each of the years ended December 31, 2022, 2021, and 2020, respectively, and is presented as a reduction to selling, general, and administrative expense on the consolidated statements of operations in those periods.