Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies

v3.24.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Leases
During the year ended December 31, 2023, the Company maintained six leases of facilities located in the United States and the Netherlands, as well as, two leases of equipment classified as finance leases. In addition, the Company has two failed sale-leaseback transactions that have been recorded as finance obligations within its consolidated balance sheets. See Note 13 for additional information.
The table below presents certain information related to the Company’s lease costs:
Twelve Months Ended
December 31,
2023 2022
Operating lease expense $ 996  $ 1,000 
Finance lease expense 46 — 
Interest expense on finance lease liabilities 21 — 
Total lease cost $ 1,063  $ 1,000 
The Company recorded sublease income of $283 and $255 during the years ended December 31, 2023 and 2022, respectively. The sublease income is associated with the Company's sublease of its facility in Michigan.
Right-of-use assets and lease liabilities for operating leases were recorded in the consolidated balance sheets as follows:
December 31,
2023 2022
Assets:
Operating lease right-of-use assets, net $ 1,739  $ 2,365 
Finance lease right-of-use assets, net 306  — 
Total lease assets $ 2,045  $ 2,365 
Liabilities:
Current liabilities:
Operating lease liabilities, current $ 864  $ 719 
Finance lease liability, current 64  — 
Non-current liabilities:
Operating lease liabilities, net of current portion 979 1,715
Finance lease liability, net of current portion 245  — 
Total lease liability $ 2,152  $ 2,434 
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 and finance leases was 2.14 years and 4.24 years, and the weighted-average incremental borrowing rate for the operating and finance leases was 6.97% and 8.24% as of December 31, 2023, respectively. The weighted-average remaining lease term for operating leases was 3.06 years, and the weighted-average incremental borrowing rate was 7.07% as of December 31, 2022.
Supplemental cash flow information related to the Company’s leases was as follows:
Years Ended December 31,
2023 2022
Operating cash flows from operating leases $ 964  $ 1,049 
Financing cash flows from finance leases $ 45  $ — 
Lease liabilities arising from obtaining right-of-use assets $ 598  $ 285 
As of December 31, 2023, future minimum lease payments required under operating leases are as follows:
Operating Leases Finance Leases
2024 $ 970  $ 87 
2025 792  87 
2026 237  87 
2027 —  87 
Thereafter —  20 
Total minimum lease payments 1,999  368 
Less effects of discounting (156) (59)
Present value of future minimum lease payments $ 1,843  $ 309 
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 consolidated financial position or results of operations as of and for the years ended December 31, 2023 and 2022.