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Commitments and Contingencies
3 Months Ended
Mar. 31, 2021
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

9. Commitments and Contingencies

Lease Commitments

 

In May 2016, the Company entered into a lease agreement for office and storage space at 100 Domain Drive, Exeter New Hampshire and has entered into several amendments since then to lease additional space. In total, the Company occupies approximately 95,320 square feet of space at this facility and the lease, as most recently amended, is scheduled to expire on January 28, 2025. The Company has the option to renew the lease for two additional five-year terms by providing written notice twelve months prior to end of the initial or first lease extension term. The Company is not reasonably certain that it will renew the lease beyond January 2025.

 

In October 2019, the Company entered into an assignation and variation agreement for a lease of 453 square meters of office and warehouse space at 2 Dryden Loan, Bilston Glen Industrial Estate, Loanhead in the United Kingdom. The lease term expires on February 15, 2022 and will automatically renew for an additional five-year period unless the Company terminates the lease by providing written notice to the landlord one month prior to the end of the current lease term. The Company is not reasonably certain that it will renew the lease beyond February 2022.

 

In November 2020, in connection with the acquisition of HGE, the Company assumed a real estate lease for 22,524 square feet of office space at 1301 Virginia Drive, Fort Washington, Pennsylvania. The lease term expires on July 31, 2025. The Company has the option to renew the lease for one additional five-year term by providing written notice six months prior to end of the current lease term. The Company is not reasonably certain that it will renew the lease beyond July 2025.

 

The Company adopted ASC 842 effective January 1, 2020. As a result, the March 31, 2020 condensed consolidated financial statements have been updated, as applicable, to reflect the adoption of this standard. There was no effect of the change on the Company’s 2020 results of operations as a result of the adoption. The following table presents operating lease cost and information related to operating right-of-use assets and operating lease liabilities for the periods indicated:

 

 

 

 

Three Months Ended

March 31,

 

 

 

2021

 

2020

 

Lease cost:

 

 

 

 

 

 

 

  Operating lease cost

 

$

416

 

$

403

 

  Variable lease cost

 

 

133

 

 

102

 

  Total

 

$

549

 

$

505

 

Operating cash flow impacts:

 

 

 

 

 

 

 

  Cash paid for amounts included in measurement of lease liabilities

 

$

587

 

$

404

 

Weighted average remaining lease term - operating leases (in years)

 

 

4.0

 

 

4.8

 

Weighted average discount rate - operating leases

 

 

8.0

%

 

9.1

%

 

As of March 31, 2021, future maturities of lease liabilities under the Company’s noncancelable operating leases are as follows:

 

 

 

Total Due

 

2021 (remaining 9 months)

 

 

1,772

 

2022

 

 

2,343

 

2023

 

 

2,380

 

2024

 

 

2,417

 

2025

 

 

515

 

Total payments

 

 

9,427

 

Less interest

 

 

(1,476

)

Total present value of lease payments

 

$

7,951

 

 

Legal

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.