Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.22.1
Leases
3 Months Ended
Mar. 31, 2022
Leases [Abstract]  
Leases

NOTE 9 – LEASES

 

The Company has operating leases for administrative offices and research and development facilities, and certain finance leases for equipment. The operating leases have remaining terms of less than one year to less than seven years. Leases with an initial term of 12 months or less will not be recorded on the condensed consolidated balance sheets as operating leases or finance leases, and the Company will recognize lease expense for these leases on a straight-line basis over the lease term. Certain leases include options to renew, with renewal terms that can extend the lease term for five years. The exercise of lease renewal options for the Company’s existing leases is at the Company’s sole discretion and not included in the measurement of lease liability and ROU asset as they are not reasonably certain to be exercised. Certain finance leases also include options to purchase the leased equipment. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The leases do not contain any residual value guarantees or material restrictive covenants.

 

In September 2021, the Company permanently vacated its office space of approximately 10,000 square feet in Jersey City, New Jersey. The space was vacated because employees have transitioned to long-term remote working arrangements or the Company’s office space in New York, New York. The abandonment of leased space is an indicator of impairment and the Company assessed the lease ROU asset for impairment.

 

The following table summarizes the components of lease expense for the three months ended March 31, 2022 and 2021 (in thousands):

 

Three Months Ended

March 31,

 

 

2022

 

 

2021

 

Operating leases

 

 

 

 

 

 

 

Operating lease expense

$

601

 

 

$

726

 

Variable lease expense

 

119

 

 

 

125

 

Total operating lease expense

$

720

 

 

$

851

 

 

 

 

 

 

 

 

 

 

The following table summarizes the balance sheet classification of leases at March 31, 2022 (in thousands):

Operating leases

 

 

 

Operating lease right-of-use assets

$

8,206

 

 

 

 

 

Operating lease liabilities, current1

$

2,533

 

Operating lease liabilities, non-current

 

9,009

 

Total operating lease liabilities

$

11,542

 

 

1.

Included in other current liabilities.

 

The following table presents other information on leases as of March 31, 2022 and December 31, 2021:

 

 

2022

2021

Weighted average remaining lease term, operating leases

 

5.24 years

5.65 years

Weighted average discount rate, operating leases

 

7.02%

7.02%

 

 

 

Maturities of lease liabilities were as follows as of March 31, 2022 (in thousands):

 

 

Operating Leases

 

2022 (remaining)

 

$

2,482

 

2023

 

 

2,689

 

2024

 

 

2,218

 

2025

 

 

2,147

 

2026

 

 

1,559

 

Thereafter

 

 

2,686

 

Total lease payments

 

 

13,781

 

Less:

 

 

 

 

Imputed interest

 

 

(2,239

)

Total lease liabilities

 

$

11,542

 

 

 

Supplemental cash flow information related to the Company’s leases were as follows (in thousands):

 

 

Three Months Ended

March 31,

 

 

 

2022

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

Operating cash flows operating leases

 

$

833