Leases

9 Months Ended

Sep. 30, 2022

Leases

Leases

(8) Leases

The Company’s operating lease portfolio is comprised of operating leases for office, warehouse space and equipment. Certain of the Company’s leases include one or more options to renew or terminate the lease at the Company’s discretion. The Company regularly evaluates the renewal and termination options and when they are reasonably certain of exercise, includes the renewal or termination option in our lease term. During the first seven months of the term of our newly leased building, we have subleased a portion of the unused floorspace on a temporary basis. This sublease has converted to a month-to-month lease as of June 30, 2022.

As of September 30, 2022, the ROU asset had a balance of $11,056, which is included in the “Operating lease right-of-use assets” line item of these consolidated financial statements and current and non-current lease liabilities related to the ROU asset of $1,182 and $10,740, respectively.  As of December 31, 2021, the ROU asset had a balance of $12,075 which is included in the “Operating lease right-of-use assets” line item of these consolidated financial statements and current and non-current lease liabilities related to the ROU asset of $589 and $11,700, respectively. The discount rates used for leases accounted for under ASC 842 are based on an interest rate yield curve developed for the leases in the Company’s portfolio.

The office leases contain variable lease payments which consist primarily of rent escalations based on an established index or rate and taxes, insurance, and common area or other maintenance costs, which are paid based on actual costs incurred by the lessor.

Quantitative information regarding the Company’s leases is as follows: 

	Three months ended September 30,					Nine months ended September 30,
	2022			2021		2022			2021
Components of lease cost
Finance lease cost components:
Amortization of finance lease assets	$	8		$	13	$	30		$	41
Interest on finance lease liabilities		1			4		4			15
Total finance lease costs	$	9		$	17	$	34		$	56
Operating lease cost components:
Operating lease cost		377			144		1,115			434
Variable lease cost		152			31		484			91
Short-term lease cost		33			11		83			32
Sublease income		(125	)		—		(492	)		—
Total operating lease costs		437			186		1,190			557
Total lease cost	$	446		$	203	$	1,224		$	613

Supplemental cash flow information related to leases is as follows for the nine months ended September 30, 2022 and 2021:

	2022			2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	$	468		$	554
Weighted-average remaining lease term-finance leases (in years)		0.2			0.9
Weighted-average remaining lease term-operating leases (in years)		9.0			3.2
Weighted-average discount rate-finance leases		7.6	%		9.3	%
Weighted-average discount rate-operating leases		7.5	%		14.1	%

The future maturities of the Company’s finance and operating leases as of September 30, 2022 are as follows:

	Finance Leases			Operating Leases			Total
2022	$	6		$	490		$	496
2023		6			2,050			2,056
2024		—			2,025			2,025
2025		—			1,470			1,470
2026		—			1,468			1,468
Thereafter		—			8,668			8,668
Total payments	$	12		$	16,171		$	16,183
Less amounts representing interest		(1	)		(4,249	)		(4,250	)
Total minimum payments required	$	11		$	11,922		$	11,933

The future maturities of the Company’s finance and operating leases as of September 30, 2021 were as follows:

	Finance Leases			Operating Leases			Total
2021	$	47		$	187		$	234
2022		109			761			870
2023		6			747			753
2024		—			636			636
2025		—			43			43
Thereafter		—			2			2
Total payments	$	162		$	2,376		$	2,538
Less amounts representing interest		(8	)		(470	)		(478	)
Total minimum payments required	$	154		$	1,906		$	2,060