Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies

v3.23.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Leases
During the year ended December 31, 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. The Company previously leased a manufacturing facility in Long Island City, New York, which expired in January 2023. The Company did not renew its lease at the Long Island City facility, but now houses its production in the Livonia facility.
For the years ended December 31, 2022 and 2021, operating lease expense was $1,000 and $839, respectively. The Company also recorded sublease income of $255 during the year ended December 31, 2022 associated with the Company's sublease of its facility in Michigan. The company had no sublease income during the year ended December 31, 2021. The Company records sublease income within Other income on the consolidated statements of operations and comprehensive loss.
Right of use assets and lease liabilities for operating leases were recorded in the consolidated balance sheets as follows:
December 31,
2022 2021
Assets:
Right-of-use assets, net $ 2,365  $ 842 
Total lease assets $ 2,365  $ 842 
Liabilities:
Current liabilities:
Operating lease liabilities, current $ 719  $ 639 
Non-current liabilities:
Operating lease liabilities, net of current portion 1,715 326
Total lease liability $ 2,434  $ 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 3.06 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,
2022 2021
Operating cash flows from operating leases $ 1,049  $ 928 
Lease liabilities arising from obtaining right-of-use assets $ 285  $ — 
As of December 31, 2022, future minimum lease payments required under operating leases are as follows:
2023 $ 872 
2024 846 
2025 782 
2026 237 
Total minimum lease payments 2,737 
Less effects of discounting (303)
Present value of future minimum lease payments $ 2,434 
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, 2022 and 2021.