Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.24.2.u1
Leases
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Leases

Note 8. Leases

The Company leases its office and manufacturing facilities under four non-cancellable operating leases, including options to extend, which expire between 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 during the quarter ended 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. Additionally, the Company exited from its two facilities at Campbell (Division) during the quarter ended December 31, 2023, which are no longer in use, however the lease agreements have not been terminated as of June 30, 2024.

Total right-of-use (“ROU”) assets and lease liabilities are as follows:

 

 

June 30,

 

 

December 31,

 

 

2024

 

 

2023

 

 

(In thousands)

 

Right-of-use assets:

 

 

 

 

 

 

Net book value (Other assets)

 

$

9,792

 

 

$

10,672

 

Operating lease liabilities:

 

 

 

 

 

 

Current (Accrued expense and other current liabilities)

 

$

1,865

 

 

$

2,153

 

Noncurrent (Other noncurrent liabilities)

 

 

9,159

 

 

 

9,973

 

 

 

11,024

 

 

 

12,126

 

Financing lease liabilities:

 

 

 

 

 

 

Current (Accrued expense and other current liabilities)

 

$

136

 

 

$

113

 

Noncurrent (Other noncurrent liabilities)

 

 

186

 

 

 

203

 

 

$

322

 

 

$

316

 

Total lease liabilities

 

$

11,346

 

 

$

12,442

 

 

There were no impairments recorded related to these assets as of June 30, 2024 and December 31, 2023.

Information about lease-related balances were as follows:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

(In thousands, except years and percentages)

 

Operating lease expense

 

$

746

 

 

$

746

 

 

$

1,492

 

 

$

1,510

 

Financing lease expense

 

 

43

 

 

 

9

 

 

 

92

 

 

 

18

 

Short-term lease expense

 

 

40

 

 

 

66

 

 

 

108

 

 

 

160

 

Total lease expense

 

$

829

 

 

$

821

 

 

$

1,692

 

 

$

1,688

 

Cash paid for leases

 

$

752

 

 

$

700

 

 

$

1,498

 

 

$

1,406

 

Weighted – average remaining lease term – operating
   leases (years)

 

 

7.5

 

 

 

3.6

 

 

 

7.5

 

 

 

3.6

 

Weighted – average discount rate – operating leases

 

 

8.9

%

 

 

8.7

%

 

 

8.9

%

 

 

8.7

%

 

Maturity of operating lease liabilities as of June 30, 2024 are as follows:

 

 

(In thousands)

 

Remainder of 2024

 

$

1,353

 

2025

 

 

2,390

 

2026

 

 

2,430

 

2027

 

 

2,400

 

2028

 

 

2,490

 

Thereafter

 

 

8,779

 

Total operating lease payments

 

$

19,842

 

Less portion representing imputed interest

 

 

(8,818

)

Total operating lease liabilities

 

$

11,024

 

Less current portion

 

 

1,865

 

Long-term portion

 

$

9,159