Annual report pursuant to Section 13 and 15(d)

Right-of-use Asset and Lease Liability

v3.22.4
Right-of-use Asset and Lease Liability
12 Months Ended
Dec. 31, 2022
Right-of-use Asset and Lease Liability  
Right-of-use Asset and Lease Liability

5. Right-of-use Asset and Lease Liability

The Company has entered into operating leases for office and warehouse facilities, which have terms at lease commencement that range from 3 years to 11 years. The Company determines if an arrangement is a lease at inception. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets and lease expense for these leases is recognized on a straight-line basis over the lease term.

Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at commencement date of the lease based on the present value of the lease payments over the lease term. As our leases do not provide a readily determinable implicit rate, we use an incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. The operating lease asset also includes any lease payments made and excludes lease incentives. Operating lease expense is recognized on a straight-line basis over the lease term and included in selling, general and administrative expenses.

Information related to the Company’s right-of-use assets and related lease liabilities were as follows:

Year ended

December 31,

2022

2021

Cash paid for operating lease liabilities

$

647

$

598

Right-of-use assets obtained in exchange for new operating lease obligations

$

63

$

163

Weighted-average remaining lease term

3.9 years

5.1 years

Weighted-average discount rate

3.5%

3.5%

Maturities of lease liabilities as of December 31, 2022 were as follows:

2023

 

624

2024

 

540

2025

 

548

2026

 

546

2027

125

2,383

Less: imputed interest

(566)

Total lease liabilities

$

1,817

Lease liabilities, current portion

521

Lease liabilities, net of current portion

1,296

Total lease liabilities

$

1,817