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Leases
 9 Months Ended
Sep. 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 $40.0 thousand per month for sixty-four months. Rental income recognized during nine months ended September 30, 2022 was $121.0 thousand, and was included in other expense, net in the consolidated statement of operations. Rental income recognized during the three and nine months ended September 30, 2021 was nil. As discussed in Note 6, “Property and Equipment” 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 $21.0 thousand per month, and the tenant occupied the warehouse facility in September 2021. Rental income recognized during the three and nine months ended September 30, 2022 was $65.0 thousand and $196.0 thousand, respectively, and was included in other expense, net in the consolidated statement of operations. Rental income recognized during the three and nine months ended September 30, 2021 was $12.0 thousand and was included in other expense, net in the consolidated statement of operations.
The components of lease expense and supplemental cash flow information are as follows (in thousands):
Three months ended September 30,Nine months ended September 30,
2022202120222021
Operating lease expense$217 $247 $665 $735 
Finance lease expense:
Amortization of right-of-use assets4 4 11 11 
Interest on lease liabilities1 2 5 9 
Total finance lease expense 5 6 16 20 
Short-term lease expense68 15 270 44 
Total lease expense$290 $268 $951 $799 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases$461 $380 $1,186 $1,107 
Operating cash flows from finance leases13 10 32 62 
Financing cash flows from finance leases1 2 5 8 
Maturities of lease liabilities as of September 30, 2022 are as follows (in thousands):
Years ending December 31,Operating LeasesFinance Leases
2022 (excluding the nine months ended September 30, 2022)
$262 $9 
20231,221 39 
20241,247 22 
20251,274 — 
20261,302 — 
Thereafter4,782 — 
Total lease payments$10,088 $70 
Less: Interest(2,853)(6)
Present value of lease liabilities$7,235 $64 
Supplemental balance sheet information related to leases is as follows (in thousands):
September 30, 2022December 31, 2021
Operating Leases
Operating lease right-of-use assets$1,715 $2,041 
Current portion of operating lease liabilities653 602 
Long-term operating lease liabilities6,582 7,779 
Total operating lease liabilities$7,235 $8,381 
Finance Leases
Property and equipment$147 $147 
Accumulated depreciation(52)(33)
Property and equipment, net$95 $114 
Current portion of finance lease liabilities$35 $41 
Long-term finance lease liabilities29 53 
Total finance lease liabilities$64 $94 
Weighted Average Remaining Lease Term
Operating leases8.9 years9.1 years
Finance leases1.8 years2.9 years
Weighted Average Discount Rate
Operating leases8.9 %8.9 %
Finance leases9.0 %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 $40.0 thousand per month for sixty-four months. Rental income recognized during nine months ended September 30, 2022 was $121.0 thousand, and was included in other expense, net in the consolidated statement of operations. Rental income recognized during the three and nine months ended September 30, 2021 was nil. As discussed in Note 6, “Property and Equipment” 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 $21.0 thousand per month, and the tenant occupied the warehouse facility in September 2021. Rental income recognized during the three and nine months ended September 30, 2022 was $65.0 thousand and $196.0 thousand, respectively, and was included in other expense, net in the consolidated statement of operations. Rental income recognized during the three and nine months ended September 30, 2021 was $12.0 thousand and was included in other expense, net in the consolidated statement of operations.
The components of lease expense and supplemental cash flow information are as follows (in thousands):
Three months ended September 30,Nine months ended September 30,
2022202120222021
Operating lease expense$217 $247 $665 $735 
Finance lease expense:
Amortization of right-of-use assets4 4 11 11 
Interest on lease liabilities1 2 5 9 
Total finance lease expense 5 6 16 20 
Short-term lease expense68 15 270 44 
Total lease expense$290 $268 $951 $799 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases$461 $380 $1,186 $1,107 
Operating cash flows from finance leases13 10 32 62 
Financing cash flows from finance leases1 2 5 8 
Maturities of lease liabilities as of September 30, 2022 are as follows (in thousands):
Years ending December 31,Operating LeasesFinance Leases
2022 (excluding the nine months ended September 30, 2022)
$262 $9 
20231,221 39 
20241,247 22 
20251,274 — 
20261,302 — 
Thereafter4,782 — 
Total lease payments$10,088 $70 
Less: Interest(2,853)(6)
Present value of lease liabilities$7,235 $64 
Supplemental balance sheet information related to leases is as follows (in thousands):
September 30, 2022December 31, 2021
Operating Leases
Operating lease right-of-use assets$1,715 $2,041 
Current portion of operating lease liabilities653 602 
Long-term operating lease liabilities6,582 7,779 
Total operating lease liabilities$7,235 $8,381 
Finance Leases
Property and equipment$147 $147 
Accumulated depreciation(52)(33)
Property and equipment, net$95 $114 
Current portion of finance lease liabilities$35 $41 
Long-term finance lease liabilities29 53 
Total finance lease liabilities$64 $94 
Weighted Average Remaining Lease Term
Operating leases8.9 years9.1 years
Finance leases1.8 years2.9 years
Weighted Average Discount Rate
Operating leases8.9 %8.9 %
Finance leases9.0 %8.9 %