Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.21.1
Leases
3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Leases

NOTE 10— LEASES

The Company enters into operating leases primarily for real estate, office equipment, and fleet vehicles. Lease terms generally range from one to five years, and often include options to renew for one year. The Company leases its 11,000 square foot corporate headquarters pursuant to a lease that expires on December 31, 2025 and leases a manufacturing facility located in Corona, California, which expires on June 30, 2025. The Company also leases additional office space and certain office equipment under various operating lease arrangements.

On January 22, 2020, the Company entered into a five-year real property lease agreement for an approximately 11,000 square foot facility in Corona, California and moved its manufacturing operations. The lease commenced on July 1, 2020.

On February 4, 2020, the Company also entered into a 66-month real property lease agreement for office space of approximately 11,000 square feet of office space in Foothill Ranch, California. The lease commenced on July 1, 2020.

Information related to the Company’s right-of-use assets and related liabilities were as follows (in thousands):

 

 

Three Months Ended

 

 

March 31,

 

 

2021

 

 

2020

 

Cash paid for operating lease liabilities

$

66

 

 

$

192

 

Right-of-use assets obtained in exchange for new operating
   lease obligations

$

1,890

 

 

$

 

Weighted-average remaining lease term

4.5 years

 

 

 

 

Weighted-average discount rate

 

12.3

%

 

 

0.0

%

 

Lease expense consists of payments for real property, office copiers, and IT equipment. The Company recognizes payments for non-lease components such as common area maintenance in the period incurred. As of March 31, 2021, the Company had no leases that had not commenced.

The Company allocates lease cost amongst lease and non-lease components. The Company excludes short-term leases (those with lease terms of less than one year at inception) from the measurement of lease liabilities or right-of-use assets.

Maturities of lease liabilities as of March 31, 2021 for leases that have commenced are as follows (in thousands):

 

 

 

March 31,

 

2022

 

$

583

 

2023

 

 

577

 

2024

 

 

587

 

2025

 

 

563

 

2026 and thereafter

 

 

367

 

Total future minimum lease obligations

 

 

2,676

 

Less imputed interest

 

 

(650

)

Total lease liabilities

 

$

2,026

 

 

 

 

Current operating lease liabilities, included in
   accrued liabilities

 

$

340

 

Non current lease liabilities

 

 

1,686

 

Total lease liabilities

 

$

2,026

 

 

As of March 31, 2021, right-of-use assets were $1.9 million and lease liabilities were $2.0 million.

Rent expense totaled $0.2 million in each of the three months ended March 31, 2021 and 2020.

Future minimum rental commitments under lease agreements, as of March 31, 2021, with non-cancelable terms greater than one year for each of the years ending December 31 are as follows (in thousands):

 

 

 

 

Year Ended

 

 

 

 

December 31,

 

2021 (nine months)

 

 

$

440

 

2022

 

 

 

573

 

2023

 

 

 

587

 

2024

 

 

 

587

 

2025 and thereafter

 

 

 

489

 

Total future minimum lease obligations

 

 

 

2,676

 

Less imputed interest

 

 

 

(650

)

Total lease liabilities

 

 

$

2,026