Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

10. Commitments and Contingencies

Lease Commitments

The Company’s operating lease commitments as of December 31, 2021 are described in Note 11 of the notes to the financial statements included in the 2021 Form 10-K.

In November 2021, the Company entered into a lease agreement, which commenced in January 2022, where the Company assumed a real estate lease for 23,877 square feet of manufacturing and warehouse space in Mesquite, Texas. The lease term expires on April 23, 2027. The Company has the option to renew the lease for an additional five-year term. The Company is not reasonably certain that it will renew the lease beyond April 2027.

In January 2022, the Company entered into a supplier agreement, which granted the Company the right to control the use of 7,442 square feet of manufacturing and warehouse space in Tijuana, Mexico. The term of the embedded lease expires on January 28, 2025. The Company has the option to renew the supplier agreement for an additional 12 month period. The Company is not reasonably certain that it will renew the agreement beyond January 2025.

The following table presents operating lease cost and information related to operating lease liabilities for the periods indicated:


	Six Months Ended June 30,
	2022			2021
Operating lease cost	$	1,380		$	832
Variable lease cost		233			250
Total	$	1,613		$	1,082
Operating cash flow impacts:
Cash paid for amounts included in measurement of lease liabilities	$	1,476		$	1,170
Operating right of use assets obtained in exchange for new operating lease liabilities	$	1,254		$	-
Weighted average remaining lease term - operating leases (in years)		3.1			3.7
Weighted average discount rate - operating leases		8.1	%		8.0	%

As of June 30, 2022, future maturities of lease liabilities under the Company’s noncancelable operating leases are as follows:


	Total Due
2022 (remaining 6 months)	$	1,185
2023		2,841
2024		2,894
2025		947
2026		403
Thereafter		54
Total payments		8,324
Less interest		(995	)
Total present value of lease payments	$	7,329

Legal Matters

From time to time, the Company may become involved in various legal proceedings, including those that may arise in the ordinary course of business. The Company believes there is no litigation pending that could have, individually, or in the aggregate, a material adverse effect on the results of its operations or financial condition.