LEASES

12 Months Ended

Dec. 31, 2021

NOTE 11 – LEASES

The Company leases space under non-cancelable operating leases for several office and manufacturing locations. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions.

Most leases include one or more options to renew. The exercise of lease renewal options is typically at the Company’s sole discretion; therefore, the majority of renewals to extend the lease terms are not included in the Company’s right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates the renewal options, and when they are reasonably certain of exercise, the Company includes the renewal period in its lease term.

As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The Company has a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, it applies a portfolio approach for determining the incremental borrowing rate.

The components of lease expense were as follows:

	Year Ended December 31,
	2021		2020		2019
Operating lease cost	$	2,451	$	1,541	$	1,432
Short-term lease cost		394		236		165
Lease cost	$	2,845	$	1,777	$	1,597

Supplemental cash flow information related to operating leases was as follows for the years ended December 31, 2021, 2020 and 2019:

	Year Ended December 31,
	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	$	2,845	$	1,777	$	1,597

Maturities of lease liabilities for all operating leases were as follows as of December 31, 2021:

	December 31,
2022	$	2,385
2023		1,063
2024		929
2025		19
Total lease payments		4,396
Less: Interest		(214	)
Present value of lease liabilities	$	4,182

The weighted average remaining lease terms and discount rates for all operating leases were as follows as of December 31, 2021 and 2020:

	December 31,
	2021			2020
Remaining lease term and discount rate:
Weighted average remaining lease term (years)		1.37			2.11
Weighted average discount rate		4.54	%		5.14	%