Quarterly report pursuant to Section 13 or 15(d)

OPERATING LEASES

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OPERATING LEASES
3 Months Ended
Mar. 31, 2022
Operating Leases  
OPERATING LEASES

5. OPERATING LEASES

 

On January 3, 2022, the Company terminated the lease agreements for our office and warehouse leases in American Fork, Utah. In accordance with ASC 842, the Company derecognized the right of use asset of $1,287, net of accumulated amortization of $744. The Company has also derecognized the corresponding lease liabilities of $521, resulting in a loss on lease termination of $22.

 

Effective April 26, 2022, the Company entered into an office space sub-lease agreement. See Note 14 – Subsequent Events.

 

 

The components of lease expense and supplemental cash flow information related to leases for the period are as follows:

    Three Months Ended March 31,  
    2022     2021  
Lease cost                
Operating lease cost (included in general and administrative expenses in the Company’s statement of operations)   $ 107     $ 175  
                 
Other information                
Cash paid for amounts included in the measurement of lease liabilities   $ 171     $ 196  
Weighted average remaining lease term – operating leases (in years)     5.17       4.54  
Weighted average discount rate – operating leases     4.0 %     4.0 %

 

    March 31, 2022     December 31, 2021  
Operating leases                
Right-of-use assets   $ 1,548     $ 2,177  
                 
Short-term operating lease liabilities   $ 337     $ 592  
Long-term operating lease liabilities     1,874       2,299  
Total operating lease liabilities   $ 2,211     $ 2,891  

 

Year ending   Operating Leases  
2022 remaining     337  
2023     460  
2024     472  
2025     484  
2026 and thereafter     705  
Total lease payments     2,458  
Less: Imputed interest/present value discount     (247 )
Present value of lease liabilities   $ 2,211