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Leases
 6 Months Ended
Jun. 30, 2022
Leases [Abstract]  
Leases Leases
In July 2021, the Company entered into a long-term rental agreement to lease its manufacturing facility in Waller, Texas, for $40 thousand per month for sixty-four months. Rental income recognized during the three and six months ended June 30, 2022 was nil and $121 thousand, respectively, and was included in other income in the consolidated statement of operations. As discussed in Note 1, “Organization and Nature of Operations” this facility was sold on April 18, 2022 and the lease agreement between the tenant and the Company terminated.
In August 2021, the Company entered into a five-year triple net operating lease agreement to lease its warehouse facility in Monahans, Texas, for $20 thousand per month, and the tenant occupied the warehouse facility in September 2021. Rental income recognized during the three and six months ended June 30, 2022 was $66 thousand, and $131 thousand, respectively and was included in other income in the consolidated statement of operations.
The components of lease expense and supplemental cash flow information are as follows (in thousands):
Three months ended June 30,Six months ended June 30,
2022202120222021
Operating lease expense$220 $250 $448 $488 
Finance lease expense:
Amortization of right-of-use assets4 4 87 
Interest on lease liabilities3 3 66 
Total finance lease expense 7 7 14 13 
Short-term lease expense79 61 203 134 
Total lease expense$306 $318 $665 $635 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases$350 $394 $726 $727 
Operating cash flows from finance leases10 43 20 53 
Financing cash flows from finance leases3 3 6 29 
Maturities of lease liabilities as of June 30, 2022 are as follows (in thousands):
Years ending December 31,Operating LeasesFinance Leases
2022 (excluding the six months ended June 30, 2022)$519 $19 
20231,221 39 
20241,247 21 
20251,274 — 
20261,302 — 
Thereafter4,782 — 
Total lease payments$10,345 $79 
Less: Interest(3,014)(7)
Present value of lease liabilities$7,331 $72 
Supplemental balance sheet information related to leases is as follows (in thousands):
June 30, 2022December 31, 2021
Operating Leases
Operating lease right-of-use assets$1,771 $2,041 
Current portion of operating lease liabilities636 602 
Long-term operating lease liabilities6,695 7,779 
Total operating lease liabilities$7,331 $8,381 
Finance Leases
Property and equipment$147 $147 
Accumulated depreciation(40)(33)
Property and equipment, net$107 $114 
Current portion of finance lease liabilities$34 $41 
Long-term finance lease liabilities38 53 
Total finance lease liabilities$72 $94 
Weighted Average Remaining Lease Term
Operating leases9.4 years9.1 years
Finance leases3.1 years2.9 years
Weighted Average Discount Rate
Operating leases8.9 %8.9 %
Finance leases8.9 %8.9 %
Leases Leases
In July 2021, the Company entered into a long-term rental agreement to lease its manufacturing facility in Waller, Texas, for $40 thousand per month for sixty-four months. Rental income recognized during the three and six months ended June 30, 2022 was nil and $121 thousand, respectively, and was included in other income in the consolidated statement of operations. As discussed in Note 1, “Organization and Nature of Operations” this facility was sold on April 18, 2022 and the lease agreement between the tenant and the Company terminated.
In August 2021, the Company entered into a five-year triple net operating lease agreement to lease its warehouse facility in Monahans, Texas, for $20 thousand per month, and the tenant occupied the warehouse facility in September 2021. Rental income recognized during the three and six months ended June 30, 2022 was $66 thousand, and $131 thousand, respectively and was included in other income in the consolidated statement of operations.
The components of lease expense and supplemental cash flow information are as follows (in thousands):
Three months ended June 30,Six months ended June 30,
2022202120222021
Operating lease expense$220 $250 $448 $488 
Finance lease expense:
Amortization of right-of-use assets4 4 87 
Interest on lease liabilities3 3 66 
Total finance lease expense 7 7 14 13 
Short-term lease expense79 61 203 134 
Total lease expense$306 $318 $665 $635 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases$350 $394 $726 $727 
Operating cash flows from finance leases10 43 20 53 
Financing cash flows from finance leases3 3 6 29 
Maturities of lease liabilities as of June 30, 2022 are as follows (in thousands):
Years ending December 31,Operating LeasesFinance Leases
2022 (excluding the six months ended June 30, 2022)$519 $19 
20231,221 39 
20241,247 21 
20251,274 — 
20261,302 — 
Thereafter4,782 — 
Total lease payments$10,345 $79 
Less: Interest(3,014)(7)
Present value of lease liabilities$7,331 $72 
Supplemental balance sheet information related to leases is as follows (in thousands):
June 30, 2022December 31, 2021
Operating Leases
Operating lease right-of-use assets$1,771 $2,041 
Current portion of operating lease liabilities636 602 
Long-term operating lease liabilities6,695 7,779 
Total operating lease liabilities$7,331 $8,381 
Finance Leases
Property and equipment$147 $147 
Accumulated depreciation(40)(33)
Property and equipment, net$107 $114 
Current portion of finance lease liabilities$34 $41 
Long-term finance lease liabilities38 53 
Total finance lease liabilities$72 $94 
Weighted Average Remaining Lease Term
Operating leases9.4 years9.1 years
Finance leases3.1 years2.9 years
Weighted Average Discount Rate
Operating leases8.9 %8.9 %
Finance leases8.9 %8.9 %