Obligations Under Capital Leases

12 Months Ended

Dec. 31, 2021

Assets and Liabilities, Lessee [Abstract]

Obligations Under Capital Leases

Obligations Under Capital Leases

The Company leased certain warehouse vehicles under capital leases that were set to expire in various years through 2024. The assets and liabilities under capital leases are recorded at the lower of the present value of the minimum lease payments or fair value of the assets. The assets are depreciated over their estimated useful lives. Depreciation of property under capital leases is included in depreciation and amortization expense within the general and administrative operating expenses.

Interest rates on capitalized leases varied from 3.55% to 6.50% and were imputed based on the lower of the Company’s incremental borrowing rate at the inception of each lease or the lessor’s implicit rate of return.

The capital leases provided for bargain purchase options and were guaranteed by the stockholders of the Company. In October 2021, the Company paid off all its existing capital lease obligations with the remaining balance of $0.3 million.

Following is a summary of property held under capital leases:

	December 31, 2021		December 31, 2020
	(in thousands)
Warehouse vehicles	$	—	$	1,607
Less: accumulated depreciation	—		(1,026)
Total property held under capital leases, net	$	—	$	581