Operating Lease Liabilities and Right-of-Use Assets

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Operating Lease Liabilities and Right-of-Use Assets

Operating Lease Liabilities and Right-of-Use Assets

As of December 31, 2023, we leased one facility in City of Industry, California, providing warehouse space. This lease expired in February 2024. During 2023, and through the date of this filing, we exited office space leases Austin, Texas and Los Angeles, California as well as the warehouse lease in City of Industry, CA.

Lease expenses, net of common charges, for the years ended December 31, 2023 and 2022 were $214,000 and $502,000, respectively. Sublet proceeds for the years ended December 31, 2023 and 2022 were zero and $140,000, respectively.

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

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

The following table summarizes the future undiscounted cash payments reconciled to the lease liability (in thousands):

Total lease payments remaining in 2024	$	17
Effect of discounting (1)	—
Total lease liability	17
Less: current portion of lease liabilities	17
Operating lease liabilities, net of current portion	$	—

(1) The effect of discounting is less than $1,000 due to the term remaining on the lease.

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 Liability
Balance at December 31, 2021	$	659	$	728
Additions	11		11
Amortizations and Reductions	(349)		(503)
Impairment Charges	(179)
Balance at December 31, 2022	142		236
Amortizations and Reductions	(125)		(219)
Balance at December 31, 2023	$	17	$	17

The ROU assets and lease liabilities are recorded on the Company’s consolidated balance sheets as of December 31, 2023 and December 31, 2022.

In February 2023, we exited a property in Austin, Texas and in May 2023 we exited three properties in Los Angeles, California. In February 2024, the Company exited its City of Industry, California lease upon expiration. We are currently in the process of securing a warehouse facility in, or around, Denver, CO. During the interim, our inventory is being stored in a secured third party location. We currently operate out of remote employment sites with a remote office located at 110 16th Street, Suite 1400-1024, Denver, CO 80202.