LEASES

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

LEASES

LEASES

As of June 30, 2023, the Company has a non-cancelable operating lease for its corporate office, which is located in Lake Forest, Illinois (the “Lake Forest Lease”). On May 1, 2023, the Company amended the Lake Forest Lease to reduce the size of leased premises and extend the term of the lease through December 31, 2030. In conjunction with the amendment of the Lake Forest Lease on May 1, 2023, the Company recognized an increase to both operating right-of-use asset and noncurrent operating lease liability of approximately $1.3 million, calculated using a discount rate of 7.41%.

Prior to the Company’s corporate headquarters relocation in 2018, the Company had leased its previous corporate office in Newark, California (the “Newark Lease”), which terminated at the end of November 2022. The Newark lease was partially subleased through the lease term of November 2022. Operating lease costs and sublease income related to the Newark facility are accounted for in Other gain in the Company’s Condensed Consolidated Statements of Comprehensive Income.

Sublease income for the six months ended June 30, 2022 includes a gain of $0.6 million from the early termination and settlement of a Newark facility sublease during the first quarter of 2022.

The following table reflects lease expense and income for the three and six months ended June 30, 2023 and 2022 (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
	Financial Statement Classification	2023		2022		2023		2022
Operating lease cost	Selling, general and administrative expenses	$	57	$	39	$	96	$	79
Operating lease cost	Other gain (loss)	—		148		—		296
Total lease cost		$	57	$	187	$	96	$	375
Sublease Income	Other gain (loss)	$	—	$	168	$	—	$	943

The following table reflects supplemental cash flow information related to leases for the three and six months ended June 30, 2023 and 2022 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	$	104	$	530	$	208	$	1,060

The following table reflects supplemental balance sheet information related to leases as of June 30, 2023 and December 31, 2022 (in thousands):

	Financial Statement Classification	June 30, 2023		December 31, 2022
Assets
Operating lease right-of-use assets	Other long-term assets	$	1,329	$	137
Liabilities
Current operating lease liabilities	Other current liabilities	$	229	$	401
Noncurrent operating lease liabilities	Other long-term liabilities	1,251		—
Total lease liabilities		$	1,480	$	401

LEASES

LEASES

As of June 30, 2023, the Company has a non-cancelable operating lease for its corporate office, which is located in Lake Forest, Illinois (the “Lake Forest Lease”). On May 1, 2023, the Company amended the Lake Forest Lease to reduce the size of leased premises and extend the term of the lease through December 31, 2030. In conjunction with the amendment of the Lake Forest Lease on May 1, 2023, the Company recognized an increase to both operating right-of-use asset and noncurrent operating lease liability of approximately $1.3 million, calculated using a discount rate of 7.41%.

Prior to the Company’s corporate headquarters relocation in 2018, the Company had leased its previous corporate office in Newark, California (the “Newark Lease”), which terminated at the end of November 2022. The Newark lease was partially subleased through the lease term of November 2022. Operating lease costs and sublease income related to the Newark facility are accounted for in Other gain in the Company’s Condensed Consolidated Statements of Comprehensive Income.

Sublease income for the six months ended June 30, 2022 includes a gain of $0.6 million from the early termination and settlement of a Newark facility sublease during the first quarter of 2022.

The following table reflects lease expense and income for the three and six months ended June 30, 2023 and 2022 (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
	Financial Statement Classification	2023		2022		2023		2022
Operating lease cost	Selling, general and administrative expenses	$	57	$	39	$	96	$	79
Operating lease cost	Other gain (loss)	—		148		—		296
Total lease cost		$	57	$	187	$	96	$	375
Sublease Income	Other gain (loss)	$	—	$	168	$	—	$	943

The following table reflects supplemental cash flow information related to leases for the three and six months ended June 30, 2023 and 2022 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	$	104	$	530	$	208	$	1,060

The following table reflects supplemental balance sheet information related to leases as of June 30, 2023 and December 31, 2022 (in thousands):

	Financial Statement Classification	June 30, 2023		December 31, 2022
Assets
Operating lease right-of-use assets	Other long-term assets	$	1,329	$	137
Liabilities
Current operating lease liabilities	Other current liabilities	$	229	$	401
Noncurrent operating lease liabilities	Other long-term liabilities	1,251		—
Total lease liabilities		$	1,480	$	401