As of March 31, 2022, the Company leases office space in Davis, CA, and Chatsworth, CA, as well as additional buildings, land and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these short-term leases on a straight-line basis. The Company subleases a portion of the Davis office lease to a third party. During the three months ended March 31, 2022, the Company did not enter into new leases, and there are no leases that have not yet commenced as of March 31, 2022.

Some leases (the Davis office, a warehouse, and a copy machine) include one or more options to renew, with renewal terms that can extend the lease term from one to six years. The exercise of lease renewal options is at the Company’s sole discretion.

The Company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or material restrictive covenants. Leases consisted of the following (in thousands):


Leases	Classification	March 31, 2022		December 31, 2021
Assets
Operating lease assets	Right of use asset	$	2,546	$	3,081
Total leased assets		$	2,546	$	3,081
Liabilities
Current - Operating	Operating lease liability- current	$	1,036	$	1,074
Noncurrent - Operating	Operating lease liability- noncurrent		1,709		2,220
Total leased liabilities		$	2,745	$	3,294


Lease Cost	Classification	For the Three Months Ended March 31, 2022			For the Three Months Ended March 31, 2021
Operating lease cost	SG&A and R&D Expenses	$	276		$	289
Short term lease cost (1)	SG&A and R&D Expenses		3			58
Sublease income (2)	SG&A and R&D Expenses		(87	)		(14	)
Net lease cost		$	192		$	333

(1)

Short term lease cost consists of field trial lease agreements with a lease term of 12 months or less.

(2)

Sublease income is recorded as a reduction to lease expense.


Lease Term and Discount Rate	March 31, 2022			December 31, 2021
Weighted-average remaining lease term (years)		2.5			2.7
Weighted-average discount rate		6.4	%		6.0	%