Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

Leases

According to ASC Topic 842, Leases, the Company recognizes Right-of-Use ("ROU") assets and lease liabilities for all leases with terms greater than 12 months at the commencement date. The Company determines whether an agreement is a lease at its inception. The Company has operating and finance leases for its corporate, manufacturing, and international facilities as well as certain equipment. Its leases have remaining terms of less than 1 year to up to 9 years, including available options to extend some of its lease terms for up to 5 years. One of its lease agreements has an early termination option within one year. As the interest rates implicit in the Company's leases are typically not readily determinable, the Company has elected to utilize an incremental borrowing rate as the discount rate, determined based on the expected term of the lease, the Company’s credit risk and existing borrowings.

In May 2020, the Company modified one of its office lease agreements and obtained a deferral of 2 months rental payments amid the pandemic. According to FASB Staff Q&A on Topic 842 and 841, because the amount of the total consideration paid under the modified lease agreement is substantially the same as the original agreement, except the deferral of the lease payments which only affect the timing of the payments, the Company accounted for the concession as if no changes to the lease contract were made and continues to recognize expenses during the deferral period.

The discount rates utilized ranged from 4.86% to 8.60% and were utilized to determine the present value of the lease liabilities. The components of lease expense are as follows:

	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Operating lease cost	$	159	$	159	$	475	$	476
Finance lease cost:
Amortization of right-of-use assets	4		5		11		11
Interest on lease liabilities	1		1		4		5
Total finance lease cost	$	5	$	6	$	15	$	16

Right-of-use assets obtained in exchange for new operating lease liabilities were zero and $1.0 million as of September 30, 2020 and 2019, respectively. Cash paid for amounts included in the measurement of operating lease liabilities for the three months ended September 30, 2020 and 2019 was $0.1 million and $0.1 million, respectively. Cash paid for amounts included in the measurement of operating lease liabilities for the nine months ended September 30, 2020 and 2019 was $0.4 million and $0.4 million, respectively. Cash paid for amounts included in the measurement of finance lease liabilities for the three and nine months ended September 30, 2020 and 2019, respectively, was not material.

Supplemental balance sheet information related to leases as of the periods presented are as follows:

	September 30, 2020		December 31, 2019
Operating Leases
Other assets	$	2,125	$	2,453
Capital lease obligation, current	463		434
Other long-term liabilities	1,844		2,199
Total operating lease liabilities	2,307		2,633
Finance Leases
Property, plant, and equipment	81		81
Accumulated depreciation	(25)		(12)
Property, plant, and equipment, net	56		69
Capital lease obligation, current	14		12
Other long-term liabilities	47		57
Total finance lease liabilities	$	61	$	69

The weighted average remaining lease terms as of September 30, 2020 for operating and financing leases were 5.8 years and 3.9 years, respectively. The weighted average discount rates for operating and finance leases as of September 30, 2020 were 8.3% and 8.0%, respectively.

As of September 30, 2020, maturities of lease liabilities are as follows:

	Operating		Financing
Year Ending December 31,	Leases		Leases
2020 (excluding the three months ended December 31, 2020)	$	163	$	5
2021	609		18
2022	548		18
2023	547		18
2024	234		12
2025	206		—
Thereafter	633		—
Total lease payments	2,940		71
Less imputed interest	633		10
Total	$	2,307	$	61

Leases

Leases

According to ASC Topic 842, Leases, the Company recognizes Right-of-Use ("ROU") assets and lease liabilities for all leases with terms greater than 12 months at the commencement date. The Company determines whether an agreement is a lease at its inception. The Company has operating and finance leases for its corporate, manufacturing, and international facilities as well as certain equipment. Its leases have remaining terms of less than 1 year to up to 9 years, including available options to extend some of its lease terms for up to 5 years. One of its lease agreements has an early termination option within one year. As the interest rates implicit in the Company's leases are typically not readily determinable, the Company has elected to utilize an incremental borrowing rate as the discount rate, determined based on the expected term of the lease, the Company’s credit risk and existing borrowings.

In May 2020, the Company modified one of its office lease agreements and obtained a deferral of 2 months rental payments amid the pandemic. According to FASB Staff Q&A on Topic 842 and 841, because the amount of the total consideration paid under the modified lease agreement is substantially the same as the original agreement, except the deferral of the lease payments which only affect the timing of the payments, the Company accounted for the concession as if no changes to the lease contract were made and continues to recognize expenses during the deferral period.

The discount rates utilized ranged from 4.86% to 8.60% and were utilized to determine the present value of the lease liabilities. The components of lease expense are as follows:

	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Operating lease cost	$	159	$	159	$	475	$	476
Finance lease cost:
Amortization of right-of-use assets	4		5		11		11
Interest on lease liabilities	1		1		4		5
Total finance lease cost	$	5	$	6	$	15	$	16

Right-of-use assets obtained in exchange for new operating lease liabilities were zero and $1.0 million as of September 30, 2020 and 2019, respectively. Cash paid for amounts included in the measurement of operating lease liabilities for the three months ended September 30, 2020 and 2019 was $0.1 million and $0.1 million, respectively. Cash paid for amounts included in the measurement of operating lease liabilities for the nine months ended September 30, 2020 and 2019 was $0.4 million and $0.4 million, respectively. Cash paid for amounts included in the measurement of finance lease liabilities for the three and nine months ended September 30, 2020 and 2019, respectively, was not material.

Supplemental balance sheet information related to leases as of the periods presented are as follows:

	September 30, 2020		December 31, 2019
Operating Leases
Other assets	$	2,125	$	2,453
Capital lease obligation, current	463		434
Other long-term liabilities	1,844		2,199
Total operating lease liabilities	2,307		2,633
Finance Leases
Property, plant, and equipment	81		81
Accumulated depreciation	(25)		(12)
Property, plant, and equipment, net	56		69
Capital lease obligation, current	14		12
Other long-term liabilities	47		57
Total finance lease liabilities	$	61	$	69

The weighted average remaining lease terms as of September 30, 2020 for operating and financing leases were 5.8 years and 3.9 years, respectively. The weighted average discount rates for operating and finance leases as of September 30, 2020 were 8.3% and 8.0%, respectively.

As of September 30, 2020, maturities of lease liabilities are as follows:

	Operating		Financing
Year Ending December 31,	Leases		Leases
2020 (excluding the three months ended December 31, 2020)	$	163	$	5
2021	609		18
2022	548		18
2023	547		18
2024	234		12
2025	206		—
Thereafter	633		—
Total lease payments	2,940		71
Less imputed interest	633		10
Total	$	2,307	$	61