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Leases
 3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Leases LEASESThe Company leases certain equipment, manufacturing, warehouse and office space under non-cancellable operating leases with expirations through 2026 under which it is responsible for related maintenance, taxes and insurance. The Company has one finance lease containing a bargain purchase option upon expiration of the lease in 2022. The lease term consists of the non-cancellable period of the lease, periods covered by options to extend the lease if the Company is reasonably certain to exercise the option, and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise the option. As of January 21, 2021, the terms of one of these equipment operating leases has been extended through
2026. In accordance with Accounting Standard Codification 842, Leases (“Topic 842”), the related right-of-use asset and lease liability was updated at the time of modification in January 2021. The present value of the lease obligation for this lease was calculated using an incremental borrowing rate of 15.93%, which was the Company’s blended borrowing rate on its revolving lines of credit with Crossroads Financial Group, LLC (as described below in Note 7, “Debt”) and Factors Southwest L.L.C. (as described below in Note 7, “Debt”). The present value of the remaining lease obligation was calculated using an incremental borrowing rate of 7.25%, which was the Company’s borrowing rate on its former revolving line of credit with Austin Financial Services, Inc. (the “Austin Credit Facility”). The weighted average remaining lease term for operating, restructuring and finance leases is 1.6 years, 0.3 years, and 1.1 years, respectively.
The Company had one restructured lease with a sub-lease component for the New York, New York office that was closed in 2017. The lease expires in 2021. As part of the lease agreement, there was $0.3 million in restricted cash in other current assets on the accompanying Condensed Consolidated Balance Sheets as of both March 31, 2021 and December 31, 2020, which represents collateral against the related letter of credit issued as part of this agreement.

The restructured lease and sub-lease were deemed to be in-scope and thus subject to the requirements of Topic 842 and were evaluated for impairment in accordance with the asset impairment provisions of Accounting Standard Codification 360, Property, Plant and Equipment (“Topic 360”). The Company concluded its net right-of-use assets were not impaired and the carrying amount approximates expected sub-lease income in future years as of March 31, 2021. The Company continues to carry certain immaterial operating expenses associated with this lease as restructuring liabilities and will continue to accrete those liabilities in accordance with Accounting Standard Codification 420, Exit or Disposal Cost Obligations (“Topic 420”), as has been done since the cease use date in 2017. For additional information regarding treatment of leases please refer to Note 4, “Leases,” included under Item 8, “Financial Statements and Supplementary Data,” of our 2020 Annual Report.
Components of the operating, restructured and finance lease costs recognized in net loss for the three months ended March 31, 2021 and 2020, were as follows (in thousands):
Three months ended March 31,
 20212020
Operating lease cost (income)
Sub-lease income$(25)$(25)
Lease cost143 152 
Operating lease cost, net118 127 
Restructured lease cost (income)
Sub-lease income(68)(68)
Lease cost56 61 
Restructured lease income, net(12)(7)
Total lease cost, net$106 $120 
Supplemental balance sheet information related to the Company’s operating and finance leases as of March 31, 2021 and December 31, 2020 are as follows (in thousands):
 March 31, 2021December 31, 2020
Operating Leases
Operating lease right-of-use assets$676 $794 
Restructured lease right-of-use assets54 107 
Operating lease right-of-use assets, total730 901 
Operating lease liabilities781 916 
Restructured lease liabilities85 168 
Operating lease liabilities, total866 1,084 
Finance Leases
Property and equipment13 13 
Allowances for depreciation(10)(9)
Finance lease assets, net3 4 
Finance lease liabilities3 4 
Total finance lease liabilities$3 $4 

Future minimum lease payments required under operating, restructured and finance leases for each of the 12-month rolling periods below in effect at March 31, 2021 are as follows (in thousands):
Operating LeasesRestructured LeasesRestructured Leases Sub-lease PaymentsFinance Lease
April 2021 to March 2022$621 $86 $(68)$3 
April 2022 to March 2023175 — — — 
April 2023 to March 202416 — — — 
April 2024 to March 20253 — — — 
April 2025 to March 20263 — — — 
Total future undiscounted lease payments818 86 (68)3 
Less imputed interest(37)(1)— — 
Total lease obligations$781 $85 $(68)$3 

Supplemental cash flow information related to leases for the three months ended March 31, 2021 and 2020, was as follows (in thousands):
Three months ended
March 31,
 20212020
Supplemental cash flow information 
Cash paid, net, for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$136 $135 
Operating cash flows from restructured leases$17 $17 
Financing cash flows from finance leases$1 $1 
Leases LEASESThe Company leases certain equipment, manufacturing, warehouse and office space under non-cancellable operating leases with expirations through 2026 under which it is responsible for related maintenance, taxes and insurance. The Company has one finance lease containing a bargain purchase option upon expiration of the lease in 2022. The lease term consists of the non-cancellable period of the lease, periods covered by options to extend the lease if the Company is reasonably certain to exercise the option, and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise the option. As of January 21, 2021, the terms of one of these equipment operating leases has been extended through
2026. In accordance with Accounting Standard Codification 842, Leases (“Topic 842”), the related right-of-use asset and lease liability was updated at the time of modification in January 2021. The present value of the lease obligation for this lease was calculated using an incremental borrowing rate of 15.93%, which was the Company’s blended borrowing rate on its revolving lines of credit with Crossroads Financial Group, LLC (as described below in Note 7, “Debt”) and Factors Southwest L.L.C. (as described below in Note 7, “Debt”). The present value of the remaining lease obligation was calculated using an incremental borrowing rate of 7.25%, which was the Company’s borrowing rate on its former revolving line of credit with Austin Financial Services, Inc. (the “Austin Credit Facility”). The weighted average remaining lease term for operating, restructuring and finance leases is 1.6 years, 0.3 years, and 1.1 years, respectively.
The Company had one restructured lease with a sub-lease component for the New York, New York office that was closed in 2017. The lease expires in 2021. As part of the lease agreement, there was $0.3 million in restricted cash in other current assets on the accompanying Condensed Consolidated Balance Sheets as of both March 31, 2021 and December 31, 2020, which represents collateral against the related letter of credit issued as part of this agreement.

The restructured lease and sub-lease were deemed to be in-scope and thus subject to the requirements of Topic 842 and were evaluated for impairment in accordance with the asset impairment provisions of Accounting Standard Codification 360, Property, Plant and Equipment (“Topic 360”). The Company concluded its net right-of-use assets were not impaired and the carrying amount approximates expected sub-lease income in future years as of March 31, 2021. The Company continues to carry certain immaterial operating expenses associated with this lease as restructuring liabilities and will continue to accrete those liabilities in accordance with Accounting Standard Codification 420, Exit or Disposal Cost Obligations (“Topic 420”), as has been done since the cease use date in 2017. For additional information regarding treatment of leases please refer to Note 4, “Leases,” included under Item 8, “Financial Statements and Supplementary Data,” of our 2020 Annual Report.
Components of the operating, restructured and finance lease costs recognized in net loss for the three months ended March 31, 2021 and 2020, were as follows (in thousands):
Three months ended March 31,
 20212020
Operating lease cost (income)
Sub-lease income$(25)$(25)
Lease cost143 152 
Operating lease cost, net118 127 
Restructured lease cost (income)
Sub-lease income(68)(68)
Lease cost56 61 
Restructured lease income, net(12)(7)
Total lease cost, net$106 $120 
Supplemental balance sheet information related to the Company’s operating and finance leases as of March 31, 2021 and December 31, 2020 are as follows (in thousands):
 March 31, 2021December 31, 2020
Operating Leases
Operating lease right-of-use assets$676 $794 
Restructured lease right-of-use assets54 107 
Operating lease right-of-use assets, total730 901 
Operating lease liabilities781 916 
Restructured lease liabilities85 168 
Operating lease liabilities, total866 1,084 
Finance Leases
Property and equipment13 13 
Allowances for depreciation(10)(9)
Finance lease assets, net3 4 
Finance lease liabilities3 4 
Total finance lease liabilities$3 $4 

Future minimum lease payments required under operating, restructured and finance leases for each of the 12-month rolling periods below in effect at March 31, 2021 are as follows (in thousands):
Operating LeasesRestructured LeasesRestructured Leases Sub-lease PaymentsFinance Lease
April 2021 to March 2022$621 $86 $(68)$3 
April 2022 to March 2023175 — — — 
April 2023 to March 202416 — — — 
April 2024 to March 20253 — — — 
April 2025 to March 20263 — — — 
Total future undiscounted lease payments818 86 (68)3 
Less imputed interest(37)(1)— — 
Total lease obligations$781 $85 $(68)$3 

Supplemental cash flow information related to leases for the three months ended March 31, 2021 and 2020, was as follows (in thousands):
Three months ended
March 31,
 20212020
Supplemental cash flow information 
Cash paid, net, for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$136 $135 
Operating cash flows from restructured leases$17 $17 
Financing cash flows from finance leases$1 $1