Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.21.2
Leases
 9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Leases LeasesThe Company leases its office and manufacturing facilities under two non-cancellable operating leases which expire in November 2024 and January 2023, respectively. The leases provide for base rent and certain reimbursement of lessor’s operating expenses. The agreements include a provision for renewal at the then market rate for terms specified in each lease.
During the nine months ended September 30, 2021, the Company signed two new leases for manufacturing and R&D facilities.
On July 1, 2021, the Company’s lease commenced for a 5,000+ square foot R&D facility. The lease has a term of 36 months and with a contractual obligation of $0.5 million in base rent and certain reimbursement of lessor’s operating expenses.
On November 1, 2021, the Company’s lease commenced for an 80,000+ square foot facility. The lease has a term of 65 months and with a contractual obligation of $10.9 million in base rent and certain reimbursement of lessor’s operating expenses. As of September 30, 2021, the Company has have invested $3.0 million into factory equipment and leasehold improvements.
As of September 30, 2021, the manufacturing facility lease obligations was not recorded on the balance sheet, and only included under operating leases as a future contractual obligation. As set forth under ASC 842, Leases, the delivery of the building has not been completed as of September 30, 2021, as the landlord was still completing improvements to the facility as per the terms of the agreement. As noted above, the lease commenced on November 1, 2021.
Total Right-of-Use (“ROU”) assets (recorded in Other Assets) and lease liabilities (recorded in Accrued expenses and other current liabilities and Other noncurrent liabilities) are as follows:
September 30, December 31,
2021 2020
(In thousands)
Right-of-use assets:
Net book value (Other assets) $ 1,849  $ 633 
Operating lease liabilities:
Current (Accrued expense and other current liabilities) $ 648  $ 494 
Noncurrent (Other noncurrent liabilities) 1,186  232 
1,834  726 
Financing lease liabilities:
Current (Accrued expense and other current liabilities) $ 33  $ — 
Noncurrent (Other noncurrent liabilities) 49  — 
$ 82  $ — 
Total lease liabilities $ 1,916  $ 726 
ROU assets are considered long-lived assets and are tested for impairment as described above under the heading, “Impairment of Long-lived Assets.” There were no impairments recorded related to these assets as of September 30, 2021 and December 31, 2020. Management evaluates its long-lived assets, on an annual basis or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC Topic 360, Property, Plant and Equipment.
Information about lease-related balances were as follows:
Three months ended September 30, Nine months ended September 30,
2021 2020 2021 2020
(In thousands)
Operating lease expense $ 208  $ 143  $ 511  $ 428 
Financing lease expense 9  —  22  — 
Short-term lease expense 41  14  76  46 
Total lease expense $ 258  $ 157  $ 609  $ 474 
Cash paid for leases $ 178  $ 136  $ 805  $ 395 
Weighted – average remaining lease term – operating leases (years) 2.9 1.8 2.9 1.8
Weighted – average discount rate – operating leases 4.4  % 4.5  % 4.4  % 4.5  %
Future lease payments under non-cancellable operating leases as of September 30, 2021 are as follows:
(In thousands)
Remainder of 2021
 $ 153 
2022 743 
2023 657 
2024 524 
Total operating lease payments $ 2,077 
Less portion representing imputed interest (161)
Total operating lease liabilities $ 1,916 
Less current portion 681 
Long-term portion $ 1,235 
Leases LeasesThe Company leases its office and manufacturing facilities under two non-cancellable operating leases which expire in November 2024 and January 2023, respectively. The leases provide for base rent and certain reimbursement of lessor’s operating expenses. The agreements include a provision for renewal at the then market rate for terms specified in each lease.
During the nine months ended September 30, 2021, the Company signed two new leases for manufacturing and R&D facilities.
On July 1, 2021, the Company’s lease commenced for a 5,000+ square foot R&D facility. The lease has a term of 36 months and with a contractual obligation of $0.5 million in base rent and certain reimbursement of lessor’s operating expenses.
On November 1, 2021, the Company’s lease commenced for an 80,000+ square foot facility. The lease has a term of 65 months and with a contractual obligation of $10.9 million in base rent and certain reimbursement of lessor’s operating expenses. As of September 30, 2021, the Company has have invested $3.0 million into factory equipment and leasehold improvements.
As of September 30, 2021, the manufacturing facility lease obligations was not recorded on the balance sheet, and only included under operating leases as a future contractual obligation. As set forth under ASC 842, Leases, the delivery of the building has not been completed as of September 30, 2021, as the landlord was still completing improvements to the facility as per the terms of the agreement. As noted above, the lease commenced on November 1, 2021.
Total Right-of-Use (“ROU”) assets (recorded in Other Assets) and lease liabilities (recorded in Accrued expenses and other current liabilities and Other noncurrent liabilities) are as follows:
September 30, December 31,
2021 2020
(In thousands)
Right-of-use assets:
Net book value (Other assets) $ 1,849  $ 633 
Operating lease liabilities:
Current (Accrued expense and other current liabilities) $ 648  $ 494 
Noncurrent (Other noncurrent liabilities) 1,186  232 
1,834  726 
Financing lease liabilities:
Current (Accrued expense and other current liabilities) $ 33  $ — 
Noncurrent (Other noncurrent liabilities) 49  — 
$ 82  $ — 
Total lease liabilities $ 1,916  $ 726 
ROU assets are considered long-lived assets and are tested for impairment as described above under the heading, “Impairment of Long-lived Assets.” There were no impairments recorded related to these assets as of September 30, 2021 and December 31, 2020. Management evaluates its long-lived assets, on an annual basis or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC Topic 360, Property, Plant and Equipment.
Information about lease-related balances were as follows:
Three months ended September 30, Nine months ended September 30,
2021 2020 2021 2020
(In thousands)
Operating lease expense $ 208  $ 143  $ 511  $ 428 
Financing lease expense 9  —  22  — 
Short-term lease expense 41  14  76  46 
Total lease expense $ 258  $ 157  $ 609  $ 474 
Cash paid for leases $ 178  $ 136  $ 805  $ 395 
Weighted – average remaining lease term – operating leases (years) 2.9 1.8 2.9 1.8
Weighted – average discount rate – operating leases 4.4  % 4.5  % 4.4  % 4.5  %
Future lease payments under non-cancellable operating leases as of September 30, 2021 are as follows:
(In thousands)
Remainder of 2021
 $ 153 
2022 743 
2023 657 
2024 524 
Total operating lease payments $ 2,077 
Less portion representing imputed interest (161)
Total operating lease liabilities $ 1,916 
Less current portion 681 
Long-term portion $ 1,235