Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

10. Commitments and Contingencies

Commitments:

Leases

The Company determines whether an arrangement is a lease at inception. The Company and our subsidiaries have operating leases for certain manufacturing, laboratory, office facilities and certain equipment. The leases have remaining lease terms of less than one year to less than five years. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of June 30, 2022 and December 31, 2021, the Company had no assets recorded under finance leases.

Lease expense for these leases is recognized on a straight-line basis over the lease term. For the three and six months ended June 30, 2022 and 2021, total lease costs are comprised of the following:

(Dollars in thousands)	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Operating lease cost	$	50	$	38	$	100	$	76
Short-term lease cost		—		—		—		—
Total net lease cost	$	50	$	38	$	100	$	76

Short-term leases are leases having a term of twelve months or less. The Company recognizes short-term leases on a straight-line basis and does not record a related lease asset or liability for such leases.

Other information related to leases was as follows:

(Dollars in thousands, except lease term and discount rate) (Dollars in thousands)	Six Months Ended June 30,  2022
Weighted Average Remaining Lease Term (in years):
Operating leases		1.88
Weighted Average Discount Rate:
Operating leases		3.83	%

(Dollars in thousands, except lease term and discount rate) (Dollars in thousands)	Six Months Ended June 30, 2022		Six Months Ended June 30, 2021
Supplemental Cash Flows Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	98	$	73
Non-Cash Activity Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	13	$	—

Maturities of noncancellable operating lease liabilities are as follows for the six months ending June 30:

(Dollars in thousands)
	2022
2022 (remainder of year)	$	103
2023		164
2024		84
Total lease payments		351
Less: imputed interest		(13	)
Total lease obligations		338
Less: current obligations		(196	)
Long-term lease obligations	$	142

As of June 30, 2022, there were no additional operating lease commitments that had not yet commenced.

Contingencies:

Legal

We are subject to legal proceedings, claims and liabilities which arise in the ordinary course of business. When applicable, we accrue for losses associated with legal claims when such losses are probable and can be reasonably estimated. These accruals are adjusted as additional information becomes available or circumstances change. Legal fees are charged to expense as they are incurred.

The Company has been named as a party in the December 19, 2019 United States Environmental Protection Agency (“EPA”) Demand Letter regarding the Malta Rocket Fuel Area Superfund Site (“Site”) located in Malta and Stillwater, New York in connection with an alleged release of hazardous materials into the environment. The EPA is seeking reimbursement of response costs from all named parties in the amount of approximately $358 thousand plus interest in connection with the investigation and disposal activities associated with the various drum caches discovered at the Site, issuance of the Explanation of Significant Differences (“ESD”) of the Site, and implementation of the work contemplated by the ESD. The Company considers the likelihood of a material adverse outcome to be remote and does not currently anticipate that any expense or liability it may incur as a result of these matters in the future will be material to the Company’s financial condition.