XML 45 R35.htm IDEA: XBRL DOCUMENT

Leases (Tables)

6 Months Ended

Jun. 30, 2021

Classification of Operating ROU Assets and Lease Liabilities on the Balance Sheet

Lease contracts are evaluated at inception to determine whether they contain a lease and whether we obtain the right to control an identified asset. The following table summarizes the classification of operating ROU assets and lease liabilities on the consolidated balance sheets (in thousands):

		As of
Operating Leases	Classification	June 30, 2021		December 31, 2020

Leased Assets
Operating lease - right of use assets	Long term assets	$	1,279	$	1,562

Lease Liabilities
Operating lease liabilities - Current	Other current liabilities		1,099		1,138
Operating lease liabilities	Long term liabilities		1,315		1,831
		$	2,414	$	2,969

Lease Income and Expenses

The table below summarizes lease income and expense recorded in the consolidated statements of operations incurred during the three and six months ended June 30, 2021 and 2020, (in thousands):

		Three months ended						Six months ended
Lease Cost	Classification	June 30, 2021			June 30, 2020			June 30, 2021			June 30, 2020

Operating lease cost ⁽¹⁾	Selling, general and administrative expenses	$	177		$	321		$	369		$	418
Short-term leases costs ⁽²⁾	Selling, general and administrative expenses		14			1			30			1
Sublease income⁽³⁾	Selling, general and administrative expenses		(32	)		(32	)		(64	)		(64	)
Net lease cost		$	159		$	290		$	335		$	355

(1) Includes variable lease costs which are immaterial.

(2) Includes leases maturing less than twelve months from the report date.

(3) ^{Sublease portfolio consists of two tenants, which sublease parts of our principal executive office located at 1332
Londontown Blvd, Suite 200, Sykesville, MD.}

Future Minimum Lease Payments

The Company is obligated under certain noncancelable operating leases for office facilities and equipment. Future minimum lease payments under noncancelable operating leases as of June 30, 2021 are as follows (in thousands):

(in thousands)	Gross Future Minimum Lease Payments
2021 remainder	$	613
2022		1,171
2023		638
2024		122
2025		10
Thereafter		3
Total lease payments	$	2,557
Less: Interest		143
Present value of lease payments	$	2,414

Operating Lease Weighted Average Remaining Lease Term And Discount Rate

We calculated the weighted-average remaining lease term, presented in years below and the weighted-average discount rate for our operating leases. As noted in our lease accounting policy, we use the incremental borrowing rate as the lease discount rate.

Lease Term and Discount Rate	June 30, 2021			December 31, 2020
Weighted-average remaining lease term (years) Operating leases		2.24			2.64

Weighted-average discount rate Operating leases		5.00	%		5.00	%

Classification of Lease Payments in the Statement of Cash Flows

The table below sets out the classification of lease payments in the consolidated statement of cash flows.

(in thousands)	Six months ended
Cash paid for amounts included in measurement of liabilities	June 30, 2021		June 30, 2020
Operating cash flows used in operating leases	$	639	$	675