Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.22.1
Leases
3 Months Ended
Mar. 31, 2022
Leases  
Leases

 

4. Leases

 

At the inception of an arrangement, the Company determines if an arrangement is, or contains, a lease based on facts and circumstances present in that arrangement. Lease classifications, recognition, and measurement are then determined at the lease commencement date.

 

The Company’s operating lease right-of-use (“ROU”) assets and operating lease liabilities represent primarily leases for office and warehouse spaces used to conduct our business. Finance leases consist primarily of processing and transport equipment used by our facilities’ operations.

 

The components of lease cost for the Company’s leases were as follows (in thousands):

 

    2022     2021  
    Three Months Ended  
    March 31,  
    2022     2021  
Operating Lease:                
Lease cost   $ 157     $ 111  
                 
Finance Leases:                
Amortization of ROU assets     47       59  
Interest on lease liability     11       19  
Finance leases     58       78  
                 
Short-term lease rent expense     3       3  
                 
Total lease cost   $ 218     $ 192  

 

The weighted average remaining lease term and the weighted average discount rate for operating and finance leases at March 31, 2022 were:

 

    Operating Leases     Finance Leases  
Weighted average remaining lease terms (years)     6.7       4.0  
                 
Weighted average discount rate     7.6 %     6.1 %

 

The weighted average remaining lease term and the weighted average discount rate for operating and finance leases at March 31, 2021 were:

 

    Operating Leases     Finance Leases  
Weighted average remaining lease terms (years)     7.8       3.4  
                 
Weighted average discount rate     7.8 %     6.8 %

 

 

The following table reconciles the undiscounted cash flows for the operating and finance leases at March 31, 2022 to the operating and finance lease liabilities recorded on the balance sheet (in thousands):

 

    Operating Leases     Finance Leases  
2022 (Remaining)   $ 433     $ 315  
2023     560       327  
2024     419       323  
2025     328       300  
2026     304       171  
2027 and thereafter     955       20  
Total undiscounted lease payments     2,999       1,456  
Less: Imputed interest     (662 )     (182 )
Present value of lease payments   $ 2,337     $ 1,274  
                 
Current portion of operating lease obligations   $ 416     $  
Long-term operating lease obligations, less current portion   $ 1,921     $  
Current portion of finance lease obligations   $     $ 354  
Long-term finance lease obligations, less current portion   $     $ 920  

 

Supplemental cash flow and other information related to our leases were as follows (in thousands):

 

    2022     2021  
    Three Months Ended  
    March 31,  
    2022     2021  
Cash paid for amounts included in the measurement of lease liabilities:            
Operating cash flow from operating leases   $ 143     $ 101  
Operating cash flow from finance leases   $ 11     $ 19  
Financing cash flow from finance leases   $ 58     $ 114  
                 
ROU assets obtained in exchange for lease obligations for:                
Finance liabilities   $ 147     $  
Operating liabilities   $     $