Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.22.1
Leases
 3 Months Ended
Mar. 31, 2022
Leases [Abstract]  
Leases Leases
Balance Sheet Presentation
Operating and finance lease amounts included in the unaudited condensed consolidated balance sheet are as follows (in thousands):
Classification Financial Statement Line Item March 31, 2022 December 31, 2021
Assets Right-of-use assets, operating leases $ 30,431  $ 30,811 
Assets Property, plant and equipment 1,598  1,640 
Current liabilities Current portion of lease liabilities, operating leases 1,140  1,104 
Current liabilities Current portion of lease liabilities, finance leases 248  233 
Non-current liabilities Non-current portion of lease liabilities, operating leases 31,748  32,059 
Non-current liabilities Non-current portion of lease liabilities, finance leases 1,362  1,414 
Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
(in thousands) Three Months Ended March 31, 2022 Three Months Ended March 31, 2021
Operating lease cost $ 1,048  $ 1,023 
Finance lease cost:
Amortization of right-of-use assets 67  9 
Interest on finance lease liabilities 9  — 
Sublease income $ (33) $ — 
Total lease cost $ 1,091  $ 1,032 
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.
During the fourth quarter of 2021, the Company entered into a sublease agreement with a third party to sublease a portion of the Palmer facility. The sublease agreement continues through the remaining term of the Master Lease Agreement and will expire on September 30, 2036, unless terminated in accordance with the sublease agreement. The sublease provides for an annual base rent of approximately $0.1 million in the first year, which increases on an annual basis by 2.0%. The sublessee is responsible for its pro rata share of certain costs, taxes and operating expenses related to the subleased space. The sublease includes an initial security deposit of $0.1 million.
Future expected cash receipts from the sublease as of March 31, 2022 are as follows:
(in thousands) Sublease Receipts
Remainder of 2022 $ 95 
2023 129 
2024 132 
2025 134 
2026 137 
Thereafter 1,490 
Total sublease receipts $ 2,117 
Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases as of March 31, 2022 are as follows:
(in thousands) Operating Finance
Remainder of 2022 $ 2,548  $ 211 
2023 3,818  272 
2024 3,658  246 
2025 3,677  233 
2026 3,683  233 
Thereafter 39,866  542 
Total undiscounted minimum future lease payments 57,250  1,737 
Imputed interest 24,362  127 
Present value of lease liabilities $ 32,888  $ 1,610 
Lease Term and Discount Rate
Weighted-average remaining lease term March 31, 2022 December 31, 2021
Operating leases 14.21 years 14.43 years
Finance leases 6.79 years 7.07 years
Weighted-average discount rate
Operating leases 8.30  % 8.30  %
Finance leases 2.29  % 2.27  %
During the three months ended March 31, 2022, no right-of-use assets were recognized in exchange for new operating lease liabilities.
Leases Leases
Balance Sheet Presentation
Operating and finance lease amounts included in the unaudited condensed consolidated balance sheet are as follows (in thousands):
Classification Financial Statement Line Item March 31, 2022 December 31, 2021
Assets Right-of-use assets, operating leases $ 30,431  $ 30,811 
Assets Property, plant and equipment 1,598  1,640 
Current liabilities Current portion of lease liabilities, operating leases 1,140  1,104 
Current liabilities Current portion of lease liabilities, finance leases 248  233 
Non-current liabilities Non-current portion of lease liabilities, operating leases 31,748  32,059 
Non-current liabilities Non-current portion of lease liabilities, finance leases 1,362  1,414 
Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
(in thousands) Three Months Ended March 31, 2022 Three Months Ended March 31, 2021
Operating lease cost $ 1,048  $ 1,023 
Finance lease cost:
Amortization of right-of-use assets 67  9 
Interest on finance lease liabilities 9  — 
Sublease income $ (33) $ — 
Total lease cost $ 1,091  $ 1,032 
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.
During the fourth quarter of 2021, the Company entered into a sublease agreement with a third party to sublease a portion of the Palmer facility. The sublease agreement continues through the remaining term of the Master Lease Agreement and will expire on September 30, 2036, unless terminated in accordance with the sublease agreement. The sublease provides for an annual base rent of approximately $0.1 million in the first year, which increases on an annual basis by 2.0%. The sublessee is responsible for its pro rata share of certain costs, taxes and operating expenses related to the subleased space. The sublease includes an initial security deposit of $0.1 million.
Future expected cash receipts from the sublease as of March 31, 2022 are as follows:
(in thousands) Sublease Receipts
Remainder of 2022 $ 95 
2023 129 
2024 132 
2025 134 
2026 137 
Thereafter 1,490 
Total sublease receipts $ 2,117 
Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases as of March 31, 2022 are as follows:
(in thousands) Operating Finance
Remainder of 2022 $ 2,548  $ 211 
2023 3,818  272 
2024 3,658  246 
2025 3,677  233 
2026 3,683  233 
Thereafter 39,866  542 
Total undiscounted minimum future lease payments 57,250  1,737 
Imputed interest 24,362  127 
Present value of lease liabilities $ 32,888  $ 1,610 
Lease Term and Discount Rate
Weighted-average remaining lease term March 31, 2022 December 31, 2021
Operating leases 14.21 years 14.43 years
Finance leases 6.79 years 7.07 years
Weighted-average discount rate
Operating leases 8.30  % 8.30  %
Finance leases 2.29  % 2.27  %
During the three months ended March 31, 2022, no right-of-use assets were recognized in exchange for new operating lease liabilities.
Leases Leases
Balance Sheet Presentation
Operating and finance lease amounts included in the unaudited condensed consolidated balance sheet are as follows (in thousands):
Classification Financial Statement Line Item March 31, 2022 December 31, 2021
Assets Right-of-use assets, operating leases $ 30,431  $ 30,811 
Assets Property, plant and equipment 1,598  1,640 
Current liabilities Current portion of lease liabilities, operating leases 1,140  1,104 
Current liabilities Current portion of lease liabilities, finance leases 248  233 
Non-current liabilities Non-current portion of lease liabilities, operating leases 31,748  32,059 
Non-current liabilities Non-current portion of lease liabilities, finance leases 1,362  1,414 
Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
(in thousands) Three Months Ended March 31, 2022 Three Months Ended March 31, 2021
Operating lease cost $ 1,048  $ 1,023 
Finance lease cost:
Amortization of right-of-use assets 67  9 
Interest on finance lease liabilities 9  — 
Sublease income $ (33) $ — 
Total lease cost $ 1,091  $ 1,032 
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.
During the fourth quarter of 2021, the Company entered into a sublease agreement with a third party to sublease a portion of the Palmer facility. The sublease agreement continues through the remaining term of the Master Lease Agreement and will expire on September 30, 2036, unless terminated in accordance with the sublease agreement. The sublease provides for an annual base rent of approximately $0.1 million in the first year, which increases on an annual basis by 2.0%. The sublessee is responsible for its pro rata share of certain costs, taxes and operating expenses related to the subleased space. The sublease includes an initial security deposit of $0.1 million.
Future expected cash receipts from the sublease as of March 31, 2022 are as follows:
(in thousands) Sublease Receipts
Remainder of 2022 $ 95 
2023 129 
2024 132 
2025 134 
2026 137 
Thereafter 1,490 
Total sublease receipts $ 2,117 
Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases as of March 31, 2022 are as follows:
(in thousands) Operating Finance
Remainder of 2022 $ 2,548  $ 211 
2023 3,818  272 
2024 3,658  246 
2025 3,677  233 
2026 3,683  233 
Thereafter 39,866  542 
Total undiscounted minimum future lease payments 57,250  1,737 
Imputed interest 24,362  127 
Present value of lease liabilities $ 32,888  $ 1,610 
Lease Term and Discount Rate
Weighted-average remaining lease term March 31, 2022 December 31, 2021
Operating leases 14.21 years 14.43 years
Finance leases 6.79 years 7.07 years
Weighted-average discount rate
Operating leases 8.30  % 8.30  %
Finance leases 2.29  % 2.27  %
During the three months ended March 31, 2022, no right-of-use assets were recognized in exchange for new operating lease liabilities.