Leases

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Leases

Note 5 - Leases

We lease one facility in City of Industry, California, providing warehouse space. This lease expires in February 2024. We currently operate out of remote employment sites with a remote office located at 25587 Conifer Road, Suite 105-231, Conifer, Colorado 80433.

Lease expenses including common charges and net of sublet proceeds, for the three months ended June 30, 2023 and 2022, were $36,000 and $76,000, respectively. Lease expenses, including common charges and net of sublet proceeds, for the six months ended June 30, 2023 and 2022, were $82,000 and $215,000, respectively. Sublease proceeds for the three months ended June 30, 2023 and 2022, were $11,000 and $44,000, respectively. Sublease proceeds for the six months ended June 30, 2023 and 2022, were $27,000 and $110,000, respectively.

The following provides balance sheet information related to leases as of June 30, 2023 and December 31, 2022 (in thousands):

		June 30, 2023		December 31, 2022
Assets
	Operating lease, right-of-use asset, net	$	65	$	142
Liabilities
	Current portion of operating lease liabilities	$	68	$	219
	Operating lease liabilities, net of current portion	—		17
	Total operating lease liabilities	$	68	$	236

During the three months ended June 30, 2023 and 2022, payments of $73,000 and $125,000 were made on leases, respectively. During the six months ended June 30, 2023 and 2022, payments of $173,000 and $298,000 were made on leases, respectively. The following table summarizes the future undiscounted cash payments reconciled to the lease liability (in thousands):

Remaining Lease Payments
2023	$	52
2024	17
Total lease payments	69
Effect of discounting	(1)
Total lease liability	$	68

The following table provides a reconciliation of activity for our right-of-use (“ROU”) assets and lease liabilities (in thousands):

	Right-of-Use Asset		Operating Lease Liabilities
Balance at December 31, 2021	$	659	$	728
Additions	11		11
Non-cash lease expense and payments	(349)		(503)
Impairment charges	(179)		—
Balance at December 31, 2022	142		236
Additions	—		—
Terminations and modifications	$	—	$	—
Non-cash lease expense and payments	(77)		(168)
Impairment charges	—		—
Balance at June 30, 2023	$	65	$	68

The ROU assets and lease liabilities are recorded on the Company’s Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022.