Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Sep. 30, 2023
Operating Leases  



On January 3, 2022, the Company terminated the lease agreements relating to our office and warehouse leases in American Fork, Utah. In accordance with ASC 842, Leases, the Company derecognized the right-of-use assets of $543 and the corresponding lease liabilities of $521.


On April 26, 2022, the Company entered into an office space sub-lease agreement in Lehi, Utah (the “Lehi lease”). The agreement required us to pay $12 per month for an initial term of eighteen months, which increased by 3% per annum after twelve months. In accordance with ASC 842, the Company recognized a right-of-use asset and the related lease liability of $212.


On June 13, 2023, the Company derecognized the Lehi lease as part of the sale of SaaS assets to SW Sales. As a result of the sale, the Company has eliminated any lease-related information related to the SaaS business as part of its presentation of continuing operations.


On July 3, 2023, the Company entered into a lease termination agreement with its landlord related to the office lease in Newport Beach, California. Pursuant to terms of the lease termination agreement, the Company vacated the property by August 15, 2023. A gain on lease termination of $263 was recorded within other income (expense), net in the condensed consolidated statement of operations for the three and nine months ended September 30, 2023.


On August 8, 2023, the Company entered into a studio office lease agreement for its office in California. The agreement requires the Company to pay $8 per month for a term through September 30, 2026. In accordance with ASC 842, the Company recognized a right-of-use asset and the related lease liability of $245.


See Note 14 for Subsequent Events.


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


    2023     2022  
    Nine Months Ended September 30,  
    2023     2022  
Lease cost                
Operating lease cost (included in general and administrative expenses in the Company’s statement of operations)   $ 227     $ 285  
Other information                
Cash paid for amounts included in the measurement of lease liabilities   $ 121     $ 334  
Weighted average remaining lease term – operating leases (in years)     3.00       4.67  
Weighted average discount rate – operating leases     9.0 %     4.0 %


    September 30, 2023     December 31, 2022  
Operating leases                
Right-of-use assets   $ 243     $ 1,354  
Short-term operating lease liabilities   $ 65     $ 355  
Long-term operating lease liabilities     184       1,581  
Total operating lease liabilities   $ 249     $ 1,936  


Year ending   Operating Leases  
2023 remaining   $ 23  
2024     92  
2025     96  
2026     75  
2027 and thereafter     -  
Total lease payments     286  
Less: Imputed interest/present value discount     (37 )
Present value of lease liabilities   $ 249