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Leases
12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases

8. Leases

The Company adopted ASC 842, “Leases,” as amended, as of January 1, 2019, using the retrospective approach.  The retrospective approach provides a method for recording existing leases at adoption and recording the cumulative effect of initially applying the new standard as an adjustment to the opening balance of retained earnings. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company to carry forward the historical lease classification, its assessment on whether a contract was or contains a lease, and its initial direct costs for any leases that existed prior to January 1, 2019. In addition, the Company elected the short-term lease exception as a practical expedient and elected to combine lease and non-lease components.

The Company leases its corporate office in Beaverton, Oregon. In July 2015, the Company entered into an amendment with the landlord of its corporate office to extend the lease term through March 2024 with remaining rent payments as of December 31, 2020 totaling $2,703, payable in monthly installments. The Company had leased office space in San Mateo, California, until March 31, 2020, when the lease expired.

All of the Company’s leases are operating leases.  The following table provides additional details of leases presented in the Consolidated Balance Sheets:

 

 

 

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Right of use assets

 

$

1,793

 

 

$

2,263

 

Lease liabilities, current

 

$

663

 

 

$

663

 

Lease liabilities, long-term

 

$

1,772

 

 

$

2,435

 

 

 

 

 

 

 

 

 

 

Weighted-average remaining life

 

3.2 years

 

 

4.1 years

 

Weighted-average discount rate

 

 

8.20

%

 

 

8.20

%

The carrying value of the right of use assets is included in “Other assets” and the current and long-term lease liabilities are included in “Accounts payable and other accrued liabilities” and “Lease liability and other long-term liabilities,” respectively, in the Consolidated Balance Sheets.

Operating lease expense is included in cost of revenue and operating expenses in the Consolidated Statements of Operations and in cash flows from operating activities in the Consolidated Statements of Cash Flows. The operating leases include variable lease costs which are not material and are included in operating lease expense. Additional details of the Company’s operating leases are presented in the following table:

 

 

 

Year Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Operating lease expense

 

$

1,030

 

 

$

1,044

 

Cash paid for operating leases

 

$

1,218

 

 

$

1,339

 

The table below reconciles the cash payment obligations for the first five years and total of the remaining years for the operating lease liability recorded in the Consolidated Balance Sheet as of December 31, 2020:

 

 

 

Cash

 

 

 

Payment

 

Year ending December 31:

 

Obligations

 

2021

 

$

838

 

2022

 

 

862

 

2023

 

 

867

 

2024

 

 

218

 

2025

 

 

 

Thereafter

 

 

 

Total lease payments

 

 

2,785

 

Imputed interest

 

 

(350

)

Total minimum lease payments

 

$

2,435