Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.21.2
Leases
 9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Leases Leases
On August 30, 2021, the Company entered into a thirty-eight month operating lease agreement for office space with an entity affiliated with the Company's Interim President and Chief Executive Officer. Pursuant to the terms of the lease agreement, the Company will pay a base rent in the first year of the agreement beginning October 30, 2021 of $5,364 monthly with an annual increase of 2.5% through the term of the agreement. During the three and nine months ended September 30, 2021, the Company recognized $0.2 million of right-of-use assets in exchange for new operating lease liabilities associated with this lease agreement. See Note 16 for additional information on the Company's related party transactions.
Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
Three Months Ended September 30, Nine Months Ended September 30,
(in thousands) 2021 2020 2021 2020
Operating lease cost $ 1,026  $ 1,032  $ 3,072  $ 3,101 
Finance lease cost:
Amortization of right-of-use assets 13  9  33  84 
Interest on finance lease liabilities 1  —  2  24 
Total lease cost $ 1,040  $ 1,041  $ 3,107  $ 3,209 
Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statement of operations.
Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases as of September 30, 2021 are as follows:
(in thousands) Operating Finance
Remainder of 2021 $ 930  $ 13 
2022 3,731  37 
2023 3,766  28 
2024 3,607  14 
2025 3,626  — 
Thereafter 43,548  — 
Total undiscounted minimum future lease payments 59,208  92 
Imputed interest 25,998  6 
Present value of lease liabilities $ 33,210  $ 86 
Lease Term and Discount Rate
Weighted-average remaining lease term September 30, 2021 December 31, 2020
Operating leases 14.71 years 15.47 years
Finance leases 2.26 years 2.91 years
Weighted-average discount rate
Operating leases 8.32  % 8.33  %
Finance leases 2.60  % 2.44  %
During the three and nine months ended September 30, 2021, $0.3 million of right-of-use assets were recognized in exchange for new operating lease liabilities.
Leases Leases
On August 30, 2021, the Company entered into a thirty-eight month operating lease agreement for office space with an entity affiliated with the Company's Interim President and Chief Executive Officer. Pursuant to the terms of the lease agreement, the Company will pay a base rent in the first year of the agreement beginning October 30, 2021 of $5,364 monthly with an annual increase of 2.5% through the term of the agreement. During the three and nine months ended September 30, 2021, the Company recognized $0.2 million of right-of-use assets in exchange for new operating lease liabilities associated with this lease agreement. See Note 16 for additional information on the Company's related party transactions.
Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
Three Months Ended September 30, Nine Months Ended September 30,
(in thousands) 2021 2020 2021 2020
Operating lease cost $ 1,026  $ 1,032  $ 3,072  $ 3,101 
Finance lease cost:
Amortization of right-of-use assets 13  9  33  84 
Interest on finance lease liabilities 1  —  2  24 
Total lease cost $ 1,040  $ 1,041  $ 3,107  $ 3,209 
Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statement of operations.
Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases as of September 30, 2021 are as follows:
(in thousands) Operating Finance
Remainder of 2021 $ 930  $ 13 
2022 3,731  37 
2023 3,766  28 
2024 3,607  14 
2025 3,626  — 
Thereafter 43,548  — 
Total undiscounted minimum future lease payments 59,208  92 
Imputed interest 25,998  6 
Present value of lease liabilities $ 33,210  $ 86 
Lease Term and Discount Rate
Weighted-average remaining lease term September 30, 2021 December 31, 2020
Operating leases 14.71 years 15.47 years
Finance leases 2.26 years 2.91 years
Weighted-average discount rate
Operating leases 8.32  % 8.33  %
Finance leases 2.60  % 2.44  %
During the three and nine months ended September 30, 2021, $0.3 million of right-of-use assets were recognized in exchange for new operating lease liabilities.