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Leases
6 Months Ended
Jun. 30, 2022
Lessee Disclosure [Abstract]  
Leases

10. Leases

Operating Leases

As of June 30, 2022, the Company leases office space in Davis, CA, and Chatsworth, CA, as well as additional buildings, land and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these short-term leases on a straight-line basis. The Company subleases a portion of the Davis office lease to a third party. In May 2022, the Company terminated its lease for office space in Chesterfield, MO effective August 1, 2022. The original lease term was scheduled to expire in May 2024. As a result, the Company paid $47,000 in early termination fees during the three months ended June 30, 2022. During the six months ended June 30, 2022, the Company did not enter new leases. On July 1, 2022, the Company entered into an agreement to lease office space in Dallas, TX. As of June 30, 2022, this lease had not yet commenced.

Some leases (the Davis office, a warehouse, and a copy machine) include one or more options to renew, with renewal terms that can extend the lease term from one to six years. The exercise of lease renewal options is at the Company’s sole discretion.

The Company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or material restrictive covenants. Leases consisted of the following (in thousands):

 

Leases

 

Classification

 

June 30, 2022

 

 

December 31, 2021

 

Assets

 

 

 

 

 

 

 

 

Operating lease assets

 

 Right of use asset

 

$

2,308

 

 

$

3,081

 

Total leased assets

 

 

 

$

2,308

 

 

$

3,081

 

Liabilities

 

 

 

 

 

 

 

 

Current - Operating

 

 Operating lease liability- current

 

$

994

 

 

$

1,074

 

Noncurrent - Operating

 

 Operating lease liability- noncurrent

 

 

1,500

 

 

 

2,220

 

Total leased liabilities

 

 

 

$

2,494

 

 

$

3,294

 

 

 

Lease Cost

 

Classification

 

For the Three
Months Ended
June 30, 2022

 

 

For the Three
Months Ended
June 30, 2021

 

 

For the Six
Months Ended
June 30, 2022

 

 

For the Six
Months Ended
June 30, 2021

 

Operating lease cost

 

 SG&A and R&D Expenses

 

$

268

 

 

$

347

 

 

$

544

 

 

$

636

 

Short term lease cost (1)

 

 R&D Expenses

 

 

8

 

 

 

(17

)

 

 

11

 

 

 

30

 

Short term lease cost

 

 SG&A Expenses

 

 

 

 

 

4

 

 

 

 

 

 

15

 

Sublease income (2)

 

 SG&A and R&D Expenses

 

 

(90

)

 

 

(19

)

 

 

(177

)

 

 

(33

)

Net lease cost

 

 

 

$

186

 

 

$

315

 

 

$

378

 

 

$

648

 

 

(1)
Short term lease cost consists of field trial lease agreements with a lease term of 12 months or less.
(2)
Sublease income is recorded as a reduction to lease expense.

 

Lease Term
and Discount Rate

 

June 30, 2022

 

 

December 31, 2021

 

Weighted-average remaining
   lease term (years)

 

 

2.3

 

 

 

2.7

 

Weighted-average discount rate

 

 

6.4

%

 

 

6.0

%