Leases, Lease Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases, Lease Commitments and Contingencies

Leases, Lease Commitments and ContingenciesThe Company has a lease for its headquarters location in Redwood City, California. In October 2019, the Company renewed its lease for the headquarters location in Redwood City, California for an additional five years commencing in August 2020 and expiring in July 2025. The monthly base rent during the renewed term is $0.1 million and is subject to an annual increase of 3.5%. The Company is responsible for its share of real estate taxes, common area maintenance and management fees. The Company is eligible to receive a tenant improvement allowance of $0.2 million on commencement of the renewal term in August 2020.

During 2013, the Company entered into a five-year lease for office facilities in Switzerland. The Company had an option to extend the lease through January 2022, which was not exercised by the Company. Per the lease terms, in the event the option to extend is not exercised, the lease remains in force and can be terminated with 12-months’ notice.

In April 2020, the Company executed a sublease for another office facility in Redwood City, California for a three-year term commencing on June 1, 2020. The lease agreement provides for early termination if the Company or Sublandlord elects to terminate the lease by providing the other party at least 180 days prior written notice. The early termination may only occur on or after the expiration of the 18th full calendar month of the sublease term. The monthly base rent during the term is less than $0.1 million and is subject to an annual increase of 3.5%. The Company is responsible for its share of real estate taxes, common area maintenance and management fees.

In September 2020, the Company amended a sublease agreement entered into in April 2020, to include additional facility space in Redwood City, California for a four-year term. The amendment was accounted as a separate sublease agreement. The sublease agreement contained a rent-free period through February 14, 2021, after which rent is approximately $0.1 million per month and is subject to an annual increase of 3.5%. The Company is responsible for its share of real estate taxes, common area maintenance and management fees. The Company is eligible to receive a tenant improvement allowance of $0.7 million to fund facility enhancements. The sublease agreement can be extended for an additional twelve-month period, at the Company’s option. For accounting purposes, the lease term is 4 years as it is not reasonably certain that the Company will exercise the renewal option. The amendment also changed the lease term entered into in April 2020, which was extended until May 31, 2024, but left the early termination clause unchanged. In September 2021, the Company became reasonably certain that the early termination clause would not be exercised as capital expenditures on the facility build-out created sufficient disincentive to terminate the lease early. The lease term was reevaluated and extended from November 30, 2021 to May 31, 2024.

The Company has leases on four vehicles with an average lease term of 3 years.

Operating lease cost consists of the following (in thousands):

	Years Ended December 31,
	2021		2020
Operating lease cost	$	2,878	$	2,078
Short-term lease cost	19		12
Variable lease cost	598		337
Total lease cost	$	3,495	$	2,427

The following table summarizes a maturity analysis of the Company’s lease liabilities showing the aggregate lease payments as of December 31, 2021 (in thousands):

2022	$	2,666
2023	3,407
2024	2,884
2025	1,008
Total minimum lease payments	9,965
Less: Amount of lease payments representing interest	920
Present value of future minimum lease payments	$	9,045
Less: Current lease liabilities	2,201
Long-term lease liabilities	$	6,844

The following table summarizes additional information related to the Company’s operating leases (in thousands, except weighted average data):

	December 31,
	2021		2020
Right of use asset	$	8,075	$	8,976
Weighted average remaining lease term (years)	3.17		4.13
Weighted average discount rate (percent)	6.0		6.1

The following table summarizes other supplemental information related to the Company’s operating leases (in thousands):

	Years Ended December 31,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities included in cash flows used in operating activities	$	2,805	$	1,494
Right-of-use assets obtained in exchange for lease liabilities	$	1,460	$	3,935

Contingencies

From time to time, the Company may be a party to various litigation claims in the normal course of business. Legal fees and other costs associated with such actions are expensed as incurred. The Company assesses, in conjunction with legal counsel, the need to record a liability for litigation and contingencies. Accrual estimates are recorded when and if it is determinable that such a liability for litigation and contingencies are both probable and reasonably estimable.