Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

v3.22.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Leases
In connection with its acquisition of Linear, the Company assumed two leases of manufacturing facilities during the three months ended June 30, 2022. During the three and six months ended June 30, 2022, the Company maintained five leases of facilities located in the United States and the Netherlands, as well as one lease of office equipment, under operating leases.
For the three months ended June 30, 2022 and 2021, operating lease expense was $243 and $232, respectively. For the six months ended June 30, 2022 and 2021, operating lease expense was $385 and $552, respectively.
Right of use assets and lease liabilities for operating leases were recorded in the condensed consolidated balance sheets as follows:
June 30,
2022		 December 31,
2021
Assets:
Right-of-use assets, net $ 2,603  $ 842 
Total lease assets $ 2,603  $ 842 
Liabilities:
Current liabilities:
Operating lease liabilities, current $ 850  $ 639 
Non-current liabilities:
Operating lease liabilities, net of current portion 1,838  326 
Total lease liability $ 2,688  $ 965 
The Company’s lease agreements do not state an implicit borrowing rate; therefore, an internal incremental borrowing rate was determined based on information available at the lease commencement date for the purposes of determining the present value of lease payments. The incremental borrowing rate reflects the cost to borrow on a securitized basis in each market. The weighted-average remaining lease term for operating leases was 3.28 years and the weighted-average incremental borrowing rate was 6.88% as of June 30, 2022.
Supplemental cash flow information related to the Company’s leases was as follows:
Six Months Ended
June 30,
2022 2021
Operating cash flows from operating leases $ 423  $ 597 
As of June 30, 2022, future minimum lease payments required under operating leases are as follows:
Rest of 2022
 $ 606 
2023 777 
2024 750 
2025 683 
2026 226 
Total minimum lease payments 3,042 
Less effects of discounting (354)
Present value of future minimum lease payments $ 2,688 
Desktop Metal
On March 26, 2021, the Company entered into a non-binding Memorandum of Understanding (“MOU”) with Desktop Metal, pursuant to which Desktop Metal agreed to invest $20.0 million in the PIPE Investment. Upon consummation of this investment, the Company became obligated to purchase $20.0 million of equipment, materials and services from Desktop Metal. In conjunction with these obligations, the Company and Desktop Metal agreed to develop a strategic partnership. As of June 30, 2022, the Company paid $15.9 million to Desktop Metal for equipment, materials and services received and placed purchase orders for another $4.1 million of equipment, materials and services to be purchased under the MOU by or before December 31, 2022. The Company has no further obligations under the MOU.
Legal Proceedings
The Company is involved in various legal proceedings which arise from time to time in the normal course of business. While the results of such matters generally cannot be predicted with certainty, management does not expect any such matters to have a material adverse effect on the Company’s condensed consolidated financial position or results of operations as of June 30, 2022 and December 31, 2021 and for the three and six months ended June 30, 2022 and 2021.