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Leases
3 Months Ended
Mar. 31, 2023
Lessee Disclosure [Abstract]  
Leases

8. Leases

Operating Leases

As of March 31, 2023, the Company leases office space in Dallas, TX and Davis, 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 third parties. In 2022, the Company terminated its lease for office space in Chesterfield, MO effective September 30, 2022. The original lease term was scheduled to expire in May 2024. As a result, the Company paid $47,000 in early termination fees. In addition, the Company subleased the facility in Chatsworth, CA to Radiance Beauty as part of the licensing agreement beginning November 1, 2022 for the remainder of the lease term. During 2022, the Company entered into an agreement to lease office space in Dallas, TX. The lease commenced in July 2022.

Some leases (the Dallas and Davis offices, 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

 

March 31, 2023

 

 

December 31, 2022

 

Assets

 

 

 

 

 

 

 

 

Operating lease assets

 

 Right of use asset

 

$

1,618

 

 

$

1,848

 

Total leased assets

 

 

 

$

1,618

 

 

$

1,848

 

Liabilities

 

 

 

 

 

 

 

 

Current - Operating

 

 Operating lease liability- current

 

$

1,014

 

 

$

1,010

 

Noncurrent - Operating

 

 Operating lease liability- noncurrent

 

 

760

 

 

 

1,007

 

Total leased liabilities

 

 

 

$

1,774

 

 

$

2,017

 

 

Lease Cost

 

Classification

 

Three
Months Ended
March 31, 2023

 

 

Three
Months Ended
March 31, 2022

 

 

Operating lease cost

 

 SG&A and R&D Expenses

 

$

191

 

 

$

276

 

 

Short term lease cost

 

 SG&A Expenses

 

 

3

 

 

 

3

 

 

Sublease income (1)

 

 SG&A and R&D Expenses

 

 

(108

)

 

 

(87

)

 

Net lease cost

 

 

 

$

86

 

 

$

192

 

 

 

(1)
Sublease income is recorded as a reduction to lease expense.

 

Lease Term
and Discount Rate

 

March 31, 2023

 

 

December 31, 2022

 

Weighted-average remaining
   lease term (years)

 

 

2.2

 

 

 

2.4

 

Weighted-average discount rate

 

 

6.4

%

 

 

6.0

%