Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.21.2
Leases
6 Months Ended
Jun. 30, 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

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Cash paid for operating lease liabilities

$

197

 

 

$

188

 

 

$

263

 

 

$

330

 

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

$

48

 

 

$

570

 

 

 

48

 

 

$

570

 

Weighted-average remaining lease term

4.2 years

 

 

4.5 years

 

 

4.2 years

 

 

4.5 years

 

Weighted-average discount rate

 

12.3

%

 

 

12.3

%

 

 

12.3

%

 

 

12.3

%

 

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 June 30, 2021, the Company had no significant 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 June 30, 2021 for leases that have commenced are as follows (in thousands):

 

 

 

June 30,

 

2022

 

$

608

 

2023

 

 

585

 

2024

 

 

590

 

2025

 

 

539

 

2026 and thereafter

 

 

243

 

Total future minimum lease obligations

 

 

2,565

 

Less imputed interest

 

 

(585

)

Total lease liabilities

 

$

1,980

 

 

 

 

Current operating lease liabilities, included in
   accrued liabilities

 

$

378

 

Non current lease liabilities

 

 

1,602

 

Total lease liabilities

 

$

1,980

 

 

As of June 30, 2021, right-of-use assets were $1.8 million and lease liabilities were $2.0 million.

Rent expense totaled $0.2 million and $0.4 million for the three and six months ended June 30, 2021 and $0.2 million and $0.4 million for the three and six months ended June 30, 2020.

Future minimum rental commitments under lease agreements, as of June 30, 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,

 

Remainder of 2021

 

 

$

319

 

2022

 

 

 

577

 

2023

 

 

 

591

 

2024

 

 

 

589

 

2025 and thereafter

 

 

 

489

 

Total future minimum lease obligations

 

 

 

2,565

 

Less imputed interest

 

 

 

(585

)

Total lease liabilities

 

 

$

1,980