Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 13: Commitments and Contingencies

Operating Leases

As of December 31, 2021, we have two operating leases for office and warehouse space and no financing leases.

We have an operating lease for office and warehouse space in Irvine, California with fixed minimum monthly payments of $13,945, an original lease expiration of June 2023 and an incremental borrowing rate of 4.75%. This lease represents $0.3 million of the estimated future payments under operating leases shown in the table below. In February 2022, an agreement was reached with the lessor which allowed for an early termination of the operating lease expiring on February 28, 2022. The monthly payments remained unchanged through February 2022, and we did not incur an early termination liability in result of the lease modification. In connection with the closure of the office and warehouse space in Irvine, California, we entered into a new lease agreement commencing in February 2022 to relocate our office and warehouse space in Laguna Hills, California. Pursuant to the lease agreement, the base rent of $39,778 per month is due on June 1, 2022 and will increase 3% annually. The lease expires on April 30, 2029. In connection with the new lease agreement, we entered into a sublease agreement for the Laguna Hills office and warehouse location, and we will receive $24,254 per month commencing in February 2022 with a sublease expiration of October 31, 2023.

We have an operating lease for office space in Centennial, Colorado with fixed minimum monthly payments of $9,984, a lease expiration of October 2022 and an incremental borrowing rate of 4.75%. This lease represents $0.1 million of the estimated future payments under operating leases shown in the table below.

The maturity of operating lease liabilities as of December 31, 2021 are as follows (in thousands):

2022	$	267
2023		84
Total minimum lease payments		351
Less: Interest		(11	)
Present value of operating lease liabilities	$	340

During the year ended December 31, 2021, cash paid for amounts included in the measurement of operating lease liabilities was $0.3 million.

Employee Benefit Plan

We have a 401(k)-retirement plan. Under the terms of the plan, eligible employees may defer up to 25% of their pre-tax earnings, subject to the Internal Revenue Service annual contribution limit. Additionally, the plan allows for discretionary matching contributions by us. In 2021 and 2020, the matching contributions were 100% of the employee’s contribution up to a maximum of 4% of the employee’s eligible compensation. During the years ended December 31, 2021 and 2020, we contributed $201,000 and $152,000, respectively, to the 401(k) plan.

Contingencies

From time to time, we are subject to litigation incidental to the conduct of our business. When applicable, we record accruals for contingencies when it is probable that a liability will be incurred, and the amount of loss can be reasonably estimated. While the outcome of lawsuits and other proceedings against us cannot be predicted with certainty, in our opinion, individually or in the aggregate, no such lawsuits are expected to have a material effect on our consolidated financial position or results of operations.