Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Lease Commitments

The Company leases its facilities under various operating leases expiring through 2031.

At June 30, 2022, approximate future minimum lease obligations are as follows:


	(in thousands)
2022 (remainder)	$	2,571
2023	5,122
2024	3,997
2025	2,636
2026	2,716
Thereafter	2,420
Total	$	19,462

For the three months ended June 30, 2022 and 2021, rent expense included in operating expenses was $1,070,000 and $744,000, respectively, and rent expenses included in cost of goods sold was $245,000 and $229,000, respectively. For the six months ended June 30, 2022 and 2021, rent expense included in operating expenses was $1,714,000 and $1,452,000, respectively, and rent expenses included in cost of goods sold was $505,000 and $417,000, respectively.

In September 2020, Global Wells entered into an operating lease with an unrelated party as the landlord. The lease generates monthly rental payments from $58,000 to $61,000 over the lease term of 38 months beginning September 9, 2020. Rental income for the three months ended June 30, 2022 and 2021 were $238,000 and $246,000, respectively. Rental income for the six months ended June 30, 2022 and 2021 were $476,000 and $492,000, respectively. The expected rental income is $360,000 and $611,000 for the remaining six months of the year ended December 31, 2022 and for the year ended December 31, 2023, respectively.

Contingencies

The Company is involved from time to time in certain legal actions and claims arising in the ordinary course of business. Management believes that the outcome of such litigation and claims, should they arise in the future, is not likely to have a material effect on the Company’s financial position or results of operations.