| Leases |
Leases
The Company leases its office and manufacturing facilities under five non-cancellable operating leases which expire in 2023 to 2027. The agreements include a provision for renewal at the then prevailing market rate for terms specified in each lease. During the three months ended September 30, 2022, the manufacturing facility operating lease was re-measured in accordance with ASC 842, Leases, as management’s intent is to exercise the renewal option at the end of the lease term due to the significant leasehold improvement investments made to the facility.
Total right-of-use (“ROU”) assets and lease liabilities are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
2022 |
|
2021 |
|
(In thousands) |
| Right-of-use assets: |
|
|
|
| Net book value (Other assets) |
$ |
15,092 |
|
|
$ |
11,073 |
|
| Operating lease liabilities: |
|
|
|
| Current (Accrued expense and other current liabilities) |
$ |
2,604 |
|
|
$ |
2,222 |
|
| Noncurrent (Other noncurrent liabilities) |
13,200 |
|
|
9,143 |
|
|
15,804 |
|
|
11,365 |
|
| Financing lease liabilities: |
|
|
|
| Current (Accrued expense and other current liabilities) |
$ |
34 |
|
|
$ |
33 |
|
| Noncurrent (Other noncurrent liabilities) |
14 |
|
|
41 |
|
|
$ |
48 |
|
|
$ |
74 |
|
| Total lease liabilities |
$ |
15,852 |
|
|
$ |
11,439 |
|
There were no impairments recorded related to these assets as of September 30, 2022 and December 31, 2021.
Information about lease-related balances were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
(In thousands, except years and percentages) |
| Operating lease expense |
$ |
721 |
|
$ |
208 |
|
$ |
2,156 |
|
$ |
511 |
| Financing lease expense |
9 |
|
9 |
|
27 |
|
22 |
| Short-term lease expense |
95 |
|
41 |
|
262 |
|
76 |
| Total lease expense |
$ |
825 |
|
$ |
258 |
|
$ |
2,445 |
|
$ |
609 |
| Cash paid for leases |
$ |
689 |
|
$ |
178 |
|
$ |
1,653 |
|
$ |
805 |
| Weighted – average remaining lease term – operating leases (years) |
4.3 |
|
2.9 |
|
4.3 |
|
2.9 |
| Weighted – average discount rate – operating leases |
8.6% |
|
4.4% |
|
8.6% |
|
4.4% |
Maturity of operating lease liabilities as of September 30, 2022 are as follows:
|
|
|
|
|
|
|
(In thousands) |
Remainder of 2022 |
$ |
707 |
|
| 2023 |
2,786 |
|
| 2024 |
2,730 |
|
| 2025 |
2,266 |
|
| 2026 |
2,313 |
|
| Thereafter |
13,670 |
|
| Total operating lease payments |
$ |
24,472 |
|
| Less portion representing imputed interest |
(8,668) |
|
| Total operating lease liabilities |
$ |
15,804 |
|
| Less current portion |
2,604 |
|
| Long-term portion |
$ |
13,200 |
|
|
| Leases |
Leases
The Company leases its office and manufacturing facilities under five non-cancellable operating leases which expire in 2023 to 2027. The agreements include a provision for renewal at the then prevailing market rate for terms specified in each lease. During the three months ended September 30, 2022, the manufacturing facility operating lease was re-measured in accordance with ASC 842, Leases, as management’s intent is to exercise the renewal option at the end of the lease term due to the significant leasehold improvement investments made to the facility.
Total right-of-use (“ROU”) assets and lease liabilities are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
2022 |
|
2021 |
|
(In thousands) |
| Right-of-use assets: |
|
|
|
| Net book value (Other assets) |
$ |
15,092 |
|
|
$ |
11,073 |
|
| Operating lease liabilities: |
|
|
|
| Current (Accrued expense and other current liabilities) |
$ |
2,604 |
|
|
$ |
2,222 |
|
| Noncurrent (Other noncurrent liabilities) |
13,200 |
|
|
9,143 |
|
|
15,804 |
|
|
11,365 |
|
| Financing lease liabilities: |
|
|
|
| Current (Accrued expense and other current liabilities) |
$ |
34 |
|
|
$ |
33 |
|
| Noncurrent (Other noncurrent liabilities) |
14 |
|
|
41 |
|
|
$ |
48 |
|
|
$ |
74 |
|
| Total lease liabilities |
$ |
15,852 |
|
|
$ |
11,439 |
|
There were no impairments recorded related to these assets as of September 30, 2022 and December 31, 2021.
Information about lease-related balances were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
(In thousands, except years and percentages) |
| Operating lease expense |
$ |
721 |
|
$ |
208 |
|
$ |
2,156 |
|
$ |
511 |
| Financing lease expense |
9 |
|
9 |
|
27 |
|
22 |
| Short-term lease expense |
95 |
|
41 |
|
262 |
|
76 |
| Total lease expense |
$ |
825 |
|
$ |
258 |
|
$ |
2,445 |
|
$ |
609 |
| Cash paid for leases |
$ |
689 |
|
$ |
178 |
|
$ |
1,653 |
|
$ |
805 |
| Weighted – average remaining lease term – operating leases (years) |
4.3 |
|
2.9 |
|
4.3 |
|
2.9 |
| Weighted – average discount rate – operating leases |
8.6% |
|
4.4% |
|
8.6% |
|
4.4% |
Maturity of operating lease liabilities as of September 30, 2022 are as follows:
|
|
|
|
|
|
|
(In thousands) |
Remainder of 2022 |
$ |
707 |
|
| 2023 |
2,786 |
|
| 2024 |
2,730 |
|
| 2025 |
2,266 |
|
| 2026 |
2,313 |
|
| Thereafter |
13,670 |
|
| Total operating lease payments |
$ |
24,472 |
|
| Less portion representing imputed interest |
(8,668) |
|
| Total operating lease liabilities |
$ |
15,804 |
|
| Less current portion |
2,604 |
|
| Long-term portion |
$ |
13,200 |
|
|