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Leases
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases LeasesThe Company leases manufacturing equipment under non-cancelable finance leases expiring at various dates through December 2025. The Company also leases office and manufacturing facilities under non-cancelable operating leases expiring at
various dates through June 2026. In October 2021, the Company entered into a lease agreement commencing on April 1, 2022 for a term of 65 months through August 31, 2027. In September 2021, the Company gave a notice to the landlord to terminate the lease of certain office space in Orlando, Florida. The amounts of operating lease right-of-use assets and liabilities associated with the termination were not material. Some of the Company’s leases include one or more options to renew, with renewal terms that if exercised by the Company, extend the lease term from one to six years. The exercise of these renewal options is at the Company’s discretion. The Company’s lease agreements do not contain any material terms and conditions of residual value guarantees or material restrictive covenants. The Company’s short-term leases and sublease income were not material.
The Company adopted ASC 842 using the modified retrospective method on January 1, 2021 and elected the available package of practical expedients upon adoption. The most significant impact of the adoption of ASC 842 was the recognition of right-of-use, or ROU, assets and lease liabilities for operating leases of $10.8 million and $12.0 million, respectively, and a reversal of deferred rent of $1.2 million on January 1, 2021. The Company’s accounting for finance leases remained substantially unchanged. The adoption of ASC 842 did not have any impact on the Company’s operating results or cash flows.
The Company determines if an arrangement is or contains a lease at inception. Operating leases are included in operating lease ROU assets and operating lease liabilities in the Company’s consolidated balance sheets. Finance leases are included in property and equipment, and finance lease liabilities in the Company’s consolidated balance sheets. The Company’s finance leases were not material for any of the periods presented.
ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on an amount equal to the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company generally uses the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The Company uses the implicit rate when it is readily determinable. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed it to carry forward existing lease classification and to exclude leases with original terms of one year or less. Further, the Company elected to combine lease and non-lease components for all asset classes. Any variable lease components are expensed as incurred. The operating lease ROU asset also includes adjustments related to prepaid or deferred lease payments and lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term.
The components of operating lease expenses for the year ended December 31, 2021 were as follows (in thousands):
Year Ended
December 31, 2021
Operating lease cost$4,654 
Variable lease cost1,703 
Total operating lease cost$6,357 
Supplemental cash flow information for the year ended December 31, 2021 related to operating leases was as follows (in thousands):
Amount
Cash paid for amounts included in the measurement of lease liabilities:
Cash paid for operating leases included in operating activities$(4,609)
Right of use assets obtained in exchange for lease obligations:
Operating leases2,876 
Supplemental balance sheet information related to operating leases was as follows (in thousands):
December 31, 2021
Operating leases:
Operating lease right-of-use assets$9,145 
Operating lease liabilities:
Operating lease liabilities, current$4,735 
Operating lease liabilities, non-current5,768 
Total operating lease liabilities$10,503 
Weighted average remaining terms were as follows (in years):
December 31, 2021
Weighted average remaining lease term
Operating leases2.95
Weighted average discount rates were as follows:
December 31, 2021
Weighted average discount rate
Operating leases2.80 %
Maturities of lease liabilities were as follows (in thousands):
Operating Leases
Year Ending December 31,
2022$5,049 
20233,535 
20241,253 
20251,195 
2026602 
Total lease payments11,634 
Less: imputed interest(1,131)
Total leases liabilities$10,503 
Disclosures under ASC 840, Leases
Rent expense was $7.6 million and $6.0 million for the year ended December 31, 2020 and 2019, respectively.
As of December 31, 2020, future minimum lease payments under noncancelable operating leases with an initial lease term in excess of one year were as follows (in thousands):
Operating Leases
2021$5,834 
20226,172 
20234,544 
2024746 
Total minimum lease payments$17,296 
Future minimum lease payments under noncancelable capital leases were not material as of December 31, 2020.
Leases LeasesThe Company leases manufacturing equipment under non-cancelable finance leases expiring at various dates through December 2025. The Company also leases office and manufacturing facilities under non-cancelable operating leases expiring at
various dates through June 2026. In October 2021, the Company entered into a lease agreement commencing on April 1, 2022 for a term of 65 months through August 31, 2027. In September 2021, the Company gave a notice to the landlord to terminate the lease of certain office space in Orlando, Florida. The amounts of operating lease right-of-use assets and liabilities associated with the termination were not material. Some of the Company’s leases include one or more options to renew, with renewal terms that if exercised by the Company, extend the lease term from one to six years. The exercise of these renewal options is at the Company’s discretion. The Company’s lease agreements do not contain any material terms and conditions of residual value guarantees or material restrictive covenants. The Company’s short-term leases and sublease income were not material.
The Company adopted ASC 842 using the modified retrospective method on January 1, 2021 and elected the available package of practical expedients upon adoption. The most significant impact of the adoption of ASC 842 was the recognition of right-of-use, or ROU, assets and lease liabilities for operating leases of $10.8 million and $12.0 million, respectively, and a reversal of deferred rent of $1.2 million on January 1, 2021. The Company’s accounting for finance leases remained substantially unchanged. The adoption of ASC 842 did not have any impact on the Company’s operating results or cash flows.
The Company determines if an arrangement is or contains a lease at inception. Operating leases are included in operating lease ROU assets and operating lease liabilities in the Company’s consolidated balance sheets. Finance leases are included in property and equipment, and finance lease liabilities in the Company’s consolidated balance sheets. The Company’s finance leases were not material for any of the periods presented.
ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on an amount equal to the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company generally uses the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The Company uses the implicit rate when it is readily determinable. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed it to carry forward existing lease classification and to exclude leases with original terms of one year or less. Further, the Company elected to combine lease and non-lease components for all asset classes. Any variable lease components are expensed as incurred. The operating lease ROU asset also includes adjustments related to prepaid or deferred lease payments and lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term.
The components of operating lease expenses for the year ended December 31, 2021 were as follows (in thousands):
Year Ended
December 31, 2021
Operating lease cost$4,654 
Variable lease cost1,703 
Total operating lease cost$6,357 
Supplemental cash flow information for the year ended December 31, 2021 related to operating leases was as follows (in thousands):
Amount
Cash paid for amounts included in the measurement of lease liabilities:
Cash paid for operating leases included in operating activities$(4,609)
Right of use assets obtained in exchange for lease obligations:
Operating leases2,876 
Supplemental balance sheet information related to operating leases was as follows (in thousands):
December 31, 2021
Operating leases:
Operating lease right-of-use assets$9,145 
Operating lease liabilities:
Operating lease liabilities, current$4,735 
Operating lease liabilities, non-current5,768 
Total operating lease liabilities$10,503 
Weighted average remaining terms were as follows (in years):
December 31, 2021
Weighted average remaining lease term
Operating leases2.95
Weighted average discount rates were as follows:
December 31, 2021
Weighted average discount rate
Operating leases2.80 %
Maturities of lease liabilities were as follows (in thousands):
Operating Leases
Year Ending December 31,
2022$5,049 
20233,535 
20241,253 
20251,195 
2026602 
Total lease payments11,634 
Less: imputed interest(1,131)
Total leases liabilities$10,503 
Disclosures under ASC 840, Leases
Rent expense was $7.6 million and $6.0 million for the year ended December 31, 2020 and 2019, respectively.
As of December 31, 2020, future minimum lease payments under noncancelable operating leases with an initial lease term in excess of one year were as follows (in thousands):
Operating Leases
2021$5,834 
20226,172 
20234,544 
2024746 
Total minimum lease payments$17,296 
Future minimum lease payments under noncancelable capital leases were not material as of December 31, 2020.