Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

LeasesThe Company determines whether an arrangement is a lease, or contains a lease, at inception and recognizes right-of-use assets and lease liabilities, initially measured at present value of the lease payments, on our balance sheet and classifies the leases as either operating or financing leases. The Company leases office space for our former corporate headquarters in Santa Monica, California, which is accounted for as an operating lease and various computer equipment used in the operation of our business,

which are accounted for as finance leases. The operating lease agreement includes approximately 7,869 square feet of office space for a lease term of 60 months, which commenced in July 2019, with base annual rent of approximately $0.6 million subject to annual adjustments. The finance leases are generally for 36 month terms.

The Company’s operating lease relating to its former Santa Monica Headquarters does not require any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees. The lease includes renewal options and escalation clauses. The renewal options have not been included in the calculation of the operating lease liability and right-of-use asset as the Company is not reasonably certain to exercise the options. Variable expenses generally represent the Company’s share of the landlord’s operating expenses. During the fourth quarter of 2021, the Company approved a plan for its headquarter office-based employees to work 100% remotely on a permanent basis and entered into an agreement with a broker to list the entire office space for sublease. As a result of this real estate rationalization decision, an impairment analysis of our operating right-of-use asset resulted in an impairment charge of $0.9 million to reduce the carrying value of this asset to its estimated fair value.

Quantitative information for our leases was as follows (in thousands):

		December 31,
Consolidated Balance Sheets	Balance Sheet Classification	2021		2020
Assets
Operating lease asset	"Operating lease right-of-use-asset"	$	656	$	1,959
Finance lease assets	"Property and equipment, net"	186		721
Total lease assets		$	842	$	2,680
Liabilities
Current
Operating lease liability	"Current portion of operating lease liability"	$	595	$	434
Finance lease liabilities	"Other accrued liabilities"	282		321
Non-current
Operating lease liability	"Long-term operating lease liability"	932		1,403
Finance lease liabilities	"Long-term finance lease liabilities"	136		418
Total lease liabilities		$	1,945	$	2,576

	Year Ended December 31,
Consolidated Statements of Operations	2021		2020
Operating lease expense	$	722	$	663
Short-term lease rent expense	66		104
Variable lease expense	43		37
Total rent expense	$	831	$	804
Finance lease expense:
Amortization of leased assets	$	305	$	209
Interest on lease liabilities	42		31
Total	$	347	$	240

	Year Ended December 31,
Consolidated Statements of Cash Flows	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating lease	$	649	$	580
Financing cash flows from finance leases	325		186

	December 31,
Other Information	2021		2020
Weighted-average remaining lease term (years)
Operating lease	2.3		3.8
Financing leases	1.5		2.4
Weighted-average discount rate (%)
Operating lease	10.73	%	10.15	%
Finance leases	11.46	%	10.88	%

The following table sets forth maturities of our lease liabilities (in thousands):

	At December 31, 2021
	Operating Lease		Financing Leases		Total
2022	$	727	$	302	$	1,029
2023	674		139		813
2024	332		—		332
Total lease payments	1,733		441		2,174
Less: imputed interest	(206)		(23)		(229)
Present value of lease liabilities	1,527		418		1,945
Less: current portion	(595)		(282)		(877)
Lease liabilities, non-current	$	932	$	136	$	1,068

Leases

LeasesThe Company determines whether an arrangement is a lease, or contains a lease, at inception and recognizes right-of-use assets and lease liabilities, initially measured at present value of the lease payments, on our balance sheet and classifies the leases as either operating or financing leases. The Company leases office space for our former corporate headquarters in Santa Monica, California, which is accounted for as an operating lease and various computer equipment used in the operation of our business,

which are accounted for as finance leases. The operating lease agreement includes approximately 7,869 square feet of office space for a lease term of 60 months, which commenced in July 2019, with base annual rent of approximately $0.6 million subject to annual adjustments. The finance leases are generally for 36 month terms.

The Company’s operating lease relating to its former Santa Monica Headquarters does not require any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees. The lease includes renewal options and escalation clauses. The renewal options have not been included in the calculation of the operating lease liability and right-of-use asset as the Company is not reasonably certain to exercise the options. Variable expenses generally represent the Company’s share of the landlord’s operating expenses. During the fourth quarter of 2021, the Company approved a plan for its headquarter office-based employees to work 100% remotely on a permanent basis and entered into an agreement with a broker to list the entire office space for sublease. As a result of this real estate rationalization decision, an impairment analysis of our operating right-of-use asset resulted in an impairment charge of $0.9 million to reduce the carrying value of this asset to its estimated fair value.

Quantitative information for our leases was as follows (in thousands):

		December 31,
Consolidated Balance Sheets	Balance Sheet Classification	2021		2020
Assets
Operating lease asset	"Operating lease right-of-use-asset"	$	656	$	1,959
Finance lease assets	"Property and equipment, net"	186		721
Total lease assets		$	842	$	2,680
Liabilities
Current
Operating lease liability	"Current portion of operating lease liability"	$	595	$	434
Finance lease liabilities	"Other accrued liabilities"	282		321
Non-current
Operating lease liability	"Long-term operating lease liability"	932		1,403
Finance lease liabilities	"Long-term finance lease liabilities"	136		418
Total lease liabilities		$	1,945	$	2,576

	Year Ended December 31,
Consolidated Statements of Operations	2021		2020
Operating lease expense	$	722	$	663
Short-term lease rent expense	66		104
Variable lease expense	43		37
Total rent expense	$	831	$	804
Finance lease expense:
Amortization of leased assets	$	305	$	209
Interest on lease liabilities	42		31
Total	$	347	$	240

	Year Ended December 31,
Consolidated Statements of Cash Flows	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating lease	$	649	$	580
Financing cash flows from finance leases	325		186

	December 31,
Other Information	2021		2020
Weighted-average remaining lease term (years)
Operating lease	2.3		3.8
Financing leases	1.5		2.4
Weighted-average discount rate (%)
Operating lease	10.73	%	10.15	%
Finance leases	11.46	%	10.88	%

The following table sets forth maturities of our lease liabilities (in thousands):

	At December 31, 2021
	Operating Lease		Financing Leases		Total
2022	$	727	$	302	$	1,029
2023	674		139		813
2024	332		—		332
Total lease payments	1,733		441		2,174
Less: imputed interest	(206)		(23)		(229)
Present value of lease liabilities	1,527		418		1,945
Less: current portion	(595)		(282)		(877)
Lease liabilities, non-current	$	932	$	136	$	1,068