Leases

6 Months Ended

Jun. 30, 2023

The Company leases certain properties and buildings (including manufacturing facilities, warehouses, and office spaces) and equipment under various arrangements which provide the right to use the underlying asset and require lease payments for the lease term. The Company’s lease portfolio consists of operating leases which expire at various dates through 2028.

Assets and liabilities related to operating leases are included in the consolidated balance sheets as right-of-use assets from operating leases, operating lease liabilities - current and operating lease liabilities - non-current. The Company recognizes minimum rental expense on a straight-line basis based on the fixed components of a lease arrangement. The Company amortizes this expense over the term of the lease beginning with the date of initial possession, which is the date the lessor makes an underlying asset available for use. For the three and six months ended June 30, 2023, the Company recognized lease expense of $1.5 million and $2.4 million, respectively. For the three and six months ended June 30, 2022, the Company recognized lease expense of $0.9 million and $2.0 million, respectively.

During the second quarter of 2023, the Company recorded an impairment charge of $0.5 million for the right-of use assets from operating leases in connection with vacating a part of its office space in Plano, Texas, following the reduction in administrative personnel.

The following table presents the Company's future contractual rent obligations as of June 30, 2023 (in thousands):


Remainder of 2023	$	2,818
2024	5,118
2025	3,580
2026	2,241
2027	1,130
Thereafter	693
Total operating lease payments	15,580
Less: imputed interest	(1,411)
Total operating lease liabilities	$	14,169