Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

Note 11 – Leases

The Company has operating and finance leases for facilities and certain equipment. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company does not combine lease and non-lease components in the recognition of lease expense.

As of September 30, 2021 and December 31, 2020 the Company held three leases for office, manufacturing and warehouse facilities in Aliso Viejo, California. The three leases are for 19,680, 42,106 and 48,036 square feet and expire on June 30, 2023, September 30, 2024 and January 31, 2026, respectively. For one of the facilities operating leases, the lessor provided $900,000 in tenant allowances.

The following table presents the lease balances within the condensed consolidated balance sheets (in thousands):

		September 30,		December 31,
Leases	Classification	2021		2020
Assets
Operating	Operating leases right-of-use assets		4,561	$	5,319
Finance	Property and equipment, net		38		58
Total lease assets			4,599		5,377
Liabilities
Current
Operating	Lease liabilities		1,449		1,247
Finance	Lease liabilities		20		27
Noncurrent
Operating	Long-term lease liabilities		4,011		5,042
Finance	Long-term lease liabilities		22		37
Total lease liabilities		$	5,502	$	6,353

For the three and nine months ended September 30, 2021 and 2020, the components of operating and finance lease expenses were as follows (in thousands):

		Three Months Ended September 30,				Nine Months Ended September 30,
Lease Cost	Classification	2021		2020		2021		2020
Operating lease cost	Cost of goods sold	$	3	$	3	$	10	$	10
	Research and development		64		47		222		110
	Selling, general and administrative expenses		402		418		1,205		1,138
Finance lease cost	Amortization of right-of-use asset included in Research and development expenses		—		32		—		115
	Amortization of right-of-use asset included in Selling, general and administrative expenses		5		10		20		36
Finance lease cost	Interest expense		1		3		4		12

Maturities of the Company’s operating and finance lease liabilities as of September 30, 2021 were as follows (in thousands):

	Operating		Finance
Year Ended December 31,	Leases		Leases
2021 (remainder)	$	484	$	6
2022		1,955		23
2023		1,683		18
2024		1,456		—
2025		951		—
2026		79		—
Total lease payments		6,608		47
Less: imputed interest		1,148		5
Total lease liabilities	$	5,460	$	42

The weighted average remaining lease term and weighted average discount rate used to determine lease liabilities related to the Company’s operating and finance leases as of September 30, 2021 and December 31, 2020 were:

	September 30,			December 31,
Lease Term and Discount Rate	2021			2020
Weighted average remaining lease term (years)
Operating leases		3.53			4.21
Finance leases		1.95			2.42
Weighted average discount rate
Operating leases		10.5	%		10.5	%
Finance leases		10.5	%		10.5	%