Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

v3.21.2
Commitments and Contingencies
9 Months Ended
Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Note 9. Commitments and Contingencies
Leases
During the
three
a
nd
nine months ended September 30, 2021, the Company maintained three leases of facilities located in the United States and the Netherlands, as well as, one lease of office equipment, under operating leases. The Company maintained one additional lease of equipment under a finance lease arrangement which expired during the nine months ended September 30, 2020. Additionally, the Company terminated one lease of office space during the nine months ended September 30, 2021.
The table below presents certain information related to the Company’s lease costs:
 
 
  
Three Months Ended
September 30,
 
  
Nine Months Ended
September 30,
 
 
  
2021
 
  
2020
 
  
2021
 
  
2020
 
Operating lease expense
   $ 144      $ 482      $ 696      $ 1,585  
Finance lease expense
     —          —          —          16  
Interest expense on finance lease liabilities
     —          —          —          1  
Short-term lease expense
     —          —          —          14  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total lease cost
   $ 144      $ 482      $ 696      $ 1,616  
    
 
 
    
 
 
    
 
 
    
 
 
 
 
Right of use assets and lease liabilities for operating leases were
recorded
in the condensed consolidated balance sheets as follows:
 
    
September 30,
2021
    
December 31,
2020
 
Assets:
                 
Right-of-use
assets, net
   $ 982      $ 2,102  
    
 
 
    
 
 
 
Total lease assets
   $ 982      $ 2,102  
    
 
 
    
 
 
 
Liabilities:
                 
Current liabilities:
                 
Operating lease liabilities, current
   $ 631      $ 1,222  
Non-current
liabilities:
                 
Operating lease liabilities, net of current portion
     499      $ 1,094  
    
 
 
    
 
 
 
Total lease liability
   $ 1,130      $ 2,316  
    
 
 
    
 
 
 
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 2.05 years and the weighted-average incremental borrowing rate was 5.34% as of September 30, 2021.
Supplemental cash flow information related to the Company’s leases was as follows:
 
    
Nine Months Ended
September 30,
 
    
2021
    
2020
 
Operating cash flows from operating leases
   $ 762      $ 1,754  
Operating cash flows from finance leases
     —          1  
Financing cash flows from finance leases
     —          18  
Lease liabilities arising from obtaining
right-of-use
assets
     —          4,025  
As of September 30, 2021, future
minimum
lease payments required under operating leases are as follows:
 
Rest of 2021
   $ 167  
2022
     680  
2023
     214  
2024
     132  
2025
     1  
    
 
 
 
Total minimum lease payments
     1,194  
Less effects of discounting
     (64
    
 
 
 
Present value of future minimum lease payments
   $ 1,130  
    
 
 
 
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. In November 2021, the Company paid $3.5 million to Desktop Metal for equipment received, and 
has a commitment to place purchase orders for another
 
$16.5 million
of equipment and materials under the MOU by or before December
3
1, 2021.
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 September 30, 2021 and December 31, 2020, and for the three and nine months ended September 30, 2021 and 2020.