Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.22.2
Leases
 6 Months Ended
Jun. 30, 2022
Leases [Abstract]  
Leases Leases
The Company leases administrative, manufacturing, research and distribution facilities through operating leases. Several leases include fixed payments including rent and non-lease components such as common-area or other maintenance costs.
On January 27, 2022, the Company entered into a Commercial Lease Amendment ("Amendment") with JA-Cole L.P., with an effective date of February 1, 2022, pursuant to the original Commercial Lease dated April 21, 2015, as amended (the "Lease"). The lease is for the office and warehouse facility located in Burleson, Texas. The Amendment revised the commencement date to May 1, 2022, and the expiration date to April 30, 2027. The Company accounted for the Lease revisions as a lease modification in accordance with Accounting Standard Codification ("ASC") 842, Leases, as the modification effectively terminated the existing lease and created a new lease which commenced on February 1, 2022. The Lease and related modification entries are included in the operating lease line items on the condensed consolidated balance sheet.
Total operating lease expense for the three months ended June 30, 2022, and 2021 was $1,355 and $1,211 respectively and $2,763 and $2,437 for the six months ended June 30, 2022, and 2021, respectively.

Supplemental balance sheet information related to the operating and financing leases is as follows:
(In thousands, except lease term and discount rate ) June 30, 2022 December 31, 2021
Operating Leases
Right-of-use operating assets $ 14,975  $ 15,193 
Current maturities of long-term lease obligations $ 1,756  $ 1,825 
Long-term lease obligations $ 20,653  $ 20,794 
Financing Leases
Right-of-use financing leases (1)
$ 31  $ 42 
Current maturities of long-term lease obligations $ 6  $ 9 
Long-term lease obligations $ 2  $ 4 
Weighted average operating lease term (in years): 11.4 12.1
Weighted average operating financing term (in years): 1.6 2.2
Weighted average discount rate operating leases 10.31  % 10.32% 
Weighted average discount rate financing leases 6.84%  7.23% 
(1) Financing leases are included within property and equipment, net on the condensed consolidated balance sheets.
Future minimum lease payments under operating and financing leases at June 30, 2022, were as follows:
(In thousands)  
2022 (excluding the six months ended June 30, 2022) $ 2,152 
2023 3,415 
2024 3,186 
2025 3,268 
2026 3,276 
2027 61 
Thereafter 23,939 
Total $ 39,296 
Less: Imputed interest (16,879)
Total lease liability $ 22,417 
Less: Current lease liability (1,762)
Long-term lease liability $ 20,655 
Leases Leases
The Company leases administrative, manufacturing, research and distribution facilities through operating leases. Several leases include fixed payments including rent and non-lease components such as common-area or other maintenance costs.
On January 27, 2022, the Company entered into a Commercial Lease Amendment ("Amendment") with JA-Cole L.P., with an effective date of February 1, 2022, pursuant to the original Commercial Lease dated April 21, 2015, as amended (the "Lease"). The lease is for the office and warehouse facility located in Burleson, Texas. The Amendment revised the commencement date to May 1, 2022, and the expiration date to April 30, 2027. The Company accounted for the Lease revisions as a lease modification in accordance with Accounting Standard Codification ("ASC") 842, Leases, as the modification effectively terminated the existing lease and created a new lease which commenced on February 1, 2022. The Lease and related modification entries are included in the operating lease line items on the condensed consolidated balance sheet.
Total operating lease expense for the three months ended June 30, 2022, and 2021 was $1,355 and $1,211 respectively and $2,763 and $2,437 for the six months ended June 30, 2022, and 2021, respectively.

Supplemental balance sheet information related to the operating and financing leases is as follows:
(In thousands, except lease term and discount rate ) June 30, 2022 December 31, 2021
Operating Leases
Right-of-use operating assets $ 14,975  $ 15,193 
Current maturities of long-term lease obligations $ 1,756  $ 1,825 
Long-term lease obligations $ 20,653  $ 20,794 
Financing Leases
Right-of-use financing leases (1)
$ 31  $ 42 
Current maturities of long-term lease obligations $ 6  $ 9 
Long-term lease obligations $ 2  $ 4 
Weighted average operating lease term (in years): 11.4 12.1
Weighted average operating financing term (in years): 1.6 2.2
Weighted average discount rate operating leases 10.31  % 10.32% 
Weighted average discount rate financing leases 6.84%  7.23% 
(1) Financing leases are included within property and equipment, net on the condensed consolidated balance sheets.
Future minimum lease payments under operating and financing leases at June 30, 2022, were as follows:
(In thousands)  
2022 (excluding the six months ended June 30, 2022) $ 2,152 
2023 3,415 
2024 3,186 
2025 3,268 
2026 3,276 
2027 61 
Thereafter 23,939 
Total $ 39,296 
Less: Imputed interest (16,879)
Total lease liability $ 22,417 
Less: Current lease liability (1,762)
Long-term lease liability $ 20,655