Leases

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

Leases

According to ASC Topic 842, Leases, the Company recognizes Right-of-Use ("ROU") assets and lease liabilities for all leases with terms greater than 12 months at the commencement date. The Company determines whether an agreement is a lease at its inception. The Company has operating and finance leases for its corporate, manufacturing, and international facilities as well as certain equipment. Its leases have remaining terms of less than 1 year to up to 9 years, including available options to extend some of its lease terms for up to 5 years. One of its lease agreements has an early termination option within one year. As the interest rates implicit in the Company's leases are typically not readily determinable, the Company has elected to utilize an incremental borrowing rate as the discount rate, determined based on the expected term of the lease, the Company’s credit risk and existing borrowings.

In May 2020, the Company modified one of its office lease agreements and obtained a deferral of 2 months rental payments amid the pandemic. According to FASB Staff Q&A on Topic 842 and 841, because the amount of the total consideration paid under the modified lease agreement is substantially the same as the original agreement, except the deferral of the lease payments which only affect the timing of the payments, the Company accounted for the concession as if no changes to the lease contract were made and continues to recognize expenses during the deferral period.

The discount rates utilized ranged from 4.86% to 8.60% and were utilized to determine the present value of the lease liabilities. The components of lease expense are as follows:

	Three months ended March 31,
	2021		2020
Operating lease cost	$	136	$	158
Finance lease cost:
Amortization of right-of-use assets	4		4
Interest on lease liabilities	1		1
Total finance lease cost	$	5	$	5

Right-of-use assets obtained in exchange for new operating lease liabilities were zero and $1.0 million as of March 31, 2021 and 2020, respectively. Cash paid for amounts included in the measurement of operating lease liabilities for the three months ended March 31, 2021 and 2020 was $0.1 million and $0.1 million, respectively. Cash paid for amounts

included in the measurement of finance lease liabilities for the three months ended March 31, 2021 and 2020, respectively, was not material.

Supplemental balance sheet information related to leases as of the periods presented are as follows:

	March 31, 2021		December 31, 2020
Operating Leases
Other assets	$	1,919	$	2,001
Capital lease obligation, current	420		422
Other long-term liabilities	1,658		1,761
Total operating lease liabilities	2,078		2,183
Finance Leases
Property, plant, and equipment	81		81
Accumulated depreciation	(32)		(25)
Property, plant, and equipment, net	49		56
Capital lease obligation, current	14		14
Other long-term liabilities	39		43
Total finance lease liabilities	$	53	$	57

The weighted average remaining lease terms as of March 31, 2021 for operating and financing leases were 5.6 years and 3.4 years, respectively. The weighted average discount rates for operating and finance leases as of March 31, 2021 were 8.4% and 8.0%, respectively.

As of March 31, 2021, maturities of lease liabilities are as follows:

	Operating		Financing
Year Ending March 31,	Leases		Leases
2021 (excluding the three months ended March 31, 2021)	444		13
2022	552		18
2023	551		18
2024	238		12
2025	210		—
2026	210		—
Thereafter	432		—
Total lease payments	2,637		62
Less imputed interest	559		9
Total	$	2,078	$	53

Leases

Leases

According to ASC Topic 842, Leases, the Company recognizes Right-of-Use ("ROU") assets and lease liabilities for all leases with terms greater than 12 months at the commencement date. The Company determines whether an agreement is a lease at its inception. The Company has operating and finance leases for its corporate, manufacturing, and international facilities as well as certain equipment. Its leases have remaining terms of less than 1 year to up to 9 years, including available options to extend some of its lease terms for up to 5 years. One of its lease agreements has an early termination option within one year. As the interest rates implicit in the Company's leases are typically not readily determinable, the Company has elected to utilize an incremental borrowing rate as the discount rate, determined based on the expected term of the lease, the Company’s credit risk and existing borrowings.

In May 2020, the Company modified one of its office lease agreements and obtained a deferral of 2 months rental payments amid the pandemic. According to FASB Staff Q&A on Topic 842 and 841, because the amount of the total consideration paid under the modified lease agreement is substantially the same as the original agreement, except the deferral of the lease payments which only affect the timing of the payments, the Company accounted for the concession as if no changes to the lease contract were made and continues to recognize expenses during the deferral period.

The discount rates utilized ranged from 4.86% to 8.60% and were utilized to determine the present value of the lease liabilities. The components of lease expense are as follows:

	Three months ended March 31,
	2021		2020
Operating lease cost	$	136	$	158
Finance lease cost:
Amortization of right-of-use assets	4		4
Interest on lease liabilities	1		1
Total finance lease cost	$	5	$	5

Right-of-use assets obtained in exchange for new operating lease liabilities were zero and $1.0 million as of March 31, 2021 and 2020, respectively. Cash paid for amounts included in the measurement of operating lease liabilities for the three months ended March 31, 2021 and 2020 was $0.1 million and $0.1 million, respectively. Cash paid for amounts

included in the measurement of finance lease liabilities for the three months ended March 31, 2021 and 2020, respectively, was not material.

Supplemental balance sheet information related to leases as of the periods presented are as follows:

	March 31, 2021		December 31, 2020
Operating Leases
Other assets	$	1,919	$	2,001
Capital lease obligation, current	420		422
Other long-term liabilities	1,658		1,761
Total operating lease liabilities	2,078		2,183
Finance Leases
Property, plant, and equipment	81		81
Accumulated depreciation	(32)		(25)
Property, plant, and equipment, net	49		56
Capital lease obligation, current	14		14
Other long-term liabilities	39		43
Total finance lease liabilities	$	53	$	57

The weighted average remaining lease terms as of March 31, 2021 for operating and financing leases were 5.6 years and 3.4 years, respectively. The weighted average discount rates for operating and finance leases as of March 31, 2021 were 8.4% and 8.0%, respectively.

As of March 31, 2021, maturities of lease liabilities are as follows:

	Operating		Financing
Year Ending March 31,	Leases		Leases
2021 (excluding the three months ended March 31, 2021)	444		13
2022	552		18
2023	551		18
2024	238		12
2025	210		—
2026	210		—
Thereafter	432		—
Total lease payments	2,637		62
Less imputed interest	559		9
Total	$	2,078	$	53