| Leases |
Leases The Company leases its office and manufacturing facilities under four non-cancellable operating leases, including options to extend, which expire in 2024 to 2032. The agreements include a provision for renewal at the then prevailing market rate for terms specified in each lease.
As noted above in Note 6, Balance Sheet Components, the manufacturing facility operating lease at Campbell (McGlincy) was terminated on March 31, 2023, and is no longer in use. The Company’s right-of-use assets and lease liabilities related to McGlincy were amortized in full over the life of the lease.
Total right-of-use (“ROU”) assets and lease liabilities are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
2023 |
|
2022 |
|
(In thousands) |
| Right-of-use assets: |
|
|
|
| Net book value (Other assets) |
$ |
11,600 |
|
|
$ |
13,545 |
|
| Operating lease liabilities: |
|
|
|
| Current (Accrued expense and other current liabilities) |
$ |
2,201 |
|
|
$ |
2,410 |
|
| Noncurrent (Other noncurrent liabilities) |
10,399 |
|
|
12,201 |
|
|
12,600 |
|
|
14,611 |
|
| Financing lease liabilities: |
|
|
|
| Current (Accrued expense and other current liabilities) |
$ |
43 |
|
|
$ |
35 |
|
| Noncurrent (Other noncurrent liabilities) |
56 |
|
|
5 |
|
|
$ |
99 |
|
|
$ |
40 |
|
| Total lease liabilities |
$ |
12,699 |
|
|
$ |
14,651 |
|
There were no impairments recorded related to these assets as of September 30, 2023 and December 31, 2022.
Information about lease-related balances were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(In thousands, except years and percentages) |
|
(In thousands, except years and percentages) |
| Operating lease expense |
$ |
746 |
|
$ |
721 |
|
$ |
2,256 |
|
$ |
2,156 |
|
| Financing lease expense |
18 |
|
9 |
|
36 |
|
27 |
|
| Short-term lease expense |
78 |
|
95 |
|
250 |
|
262 |
| Total lease expense |
$ |
842 |
|
$ |
825 |
|
$ |
2,542 |
|
$ |
2,445 |
|
| Cash paid for leases |
$ |
710 |
|
$ |
689 |
|
$ |
2,116 |
|
$ |
1,653 |
|
| Weighted – average remaining lease term – operating leases (years) |
3.4 |
|
4.3 |
|
3.4 |
|
4.3 |
| Weighted – average discount rate – operating leases |
8.8% |
|
8.6% |
|
8.8% |
|
8.6% |
Maturity of operating lease liabilities as of September 30, 2023 are as follows:
|
|
|
|
|
|
|
(In thousands) |
Remainder of 2023 |
$ |
711 |
|
| 2024 |
2,860 |
|
| 2025 |
2,397 |
|
| 2026 |
2,402 |
|
| 2027 |
2,400 |
|
| Thereafter |
11,270 |
|
| Total operating lease payments |
$ |
22,040 |
|
| Less portion representing imputed interest |
(9,440) |
|
| Total operating lease liabilities |
$ |
12,600 |
|
| Less current portion |
2,201 |
|
| Long-term portion |
$ |
10,399 |
|
|
| Leases |
Leases The Company leases its office and manufacturing facilities under four non-cancellable operating leases, including options to extend, which expire in 2024 to 2032. The agreements include a provision for renewal at the then prevailing market rate for terms specified in each lease.
As noted above in Note 6, Balance Sheet Components, the manufacturing facility operating lease at Campbell (McGlincy) was terminated on March 31, 2023, and is no longer in use. The Company’s right-of-use assets and lease liabilities related to McGlincy were amortized in full over the life of the lease.
Total right-of-use (“ROU”) assets and lease liabilities are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
2023 |
|
2022 |
|
(In thousands) |
| Right-of-use assets: |
|
|
|
| Net book value (Other assets) |
$ |
11,600 |
|
|
$ |
13,545 |
|
| Operating lease liabilities: |
|
|
|
| Current (Accrued expense and other current liabilities) |
$ |
2,201 |
|
|
$ |
2,410 |
|
| Noncurrent (Other noncurrent liabilities) |
10,399 |
|
|
12,201 |
|
|
12,600 |
|
|
14,611 |
|
| Financing lease liabilities: |
|
|
|
| Current (Accrued expense and other current liabilities) |
$ |
43 |
|
|
$ |
35 |
|
| Noncurrent (Other noncurrent liabilities) |
56 |
|
|
5 |
|
|
$ |
99 |
|
|
$ |
40 |
|
| Total lease liabilities |
$ |
12,699 |
|
|
$ |
14,651 |
|
There were no impairments recorded related to these assets as of September 30, 2023 and December 31, 2022.
Information about lease-related balances were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(In thousands, except years and percentages) |
|
(In thousands, except years and percentages) |
| Operating lease expense |
$ |
746 |
|
$ |
721 |
|
$ |
2,256 |
|
$ |
2,156 |
|
| Financing lease expense |
18 |
|
9 |
|
36 |
|
27 |
|
| Short-term lease expense |
78 |
|
95 |
|
250 |
|
262 |
| Total lease expense |
$ |
842 |
|
$ |
825 |
|
$ |
2,542 |
|
$ |
2,445 |
|
| Cash paid for leases |
$ |
710 |
|
$ |
689 |
|
$ |
2,116 |
|
$ |
1,653 |
|
| Weighted – average remaining lease term – operating leases (years) |
3.4 |
|
4.3 |
|
3.4 |
|
4.3 |
| Weighted – average discount rate – operating leases |
8.8% |
|
8.6% |
|
8.8% |
|
8.6% |
Maturity of operating lease liabilities as of September 30, 2023 are as follows:
|
|
|
|
|
|
|
(In thousands) |
Remainder of 2023 |
$ |
711 |
|
| 2024 |
2,860 |
|
| 2025 |
2,397 |
|
| 2026 |
2,402 |
|
| 2027 |
2,400 |
|
| Thereafter |
11,270 |
|
| Total operating lease payments |
$ |
22,040 |
|
| Less portion representing imputed interest |
(9,440) |
|
| Total operating lease liabilities |
$ |
12,600 |
|
| Less current portion |
2,201 |
|
| Long-term portion |
$ |
10,399 |
|
|