Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Leases
During the three months ended March 31, 2023, the Company maintained five leases of facilities located in the United States and the Netherlands, as well as one lease of equipment classified as a finance lease. In addition, the Company has two failed sale-leaseback transactions that have been recorded as finance obligations within its condensed consolidated balance sheets. See Note 12 for additional information.
The table below presents certain information related to the Company’s lease costs:
The Company recorded sublease income of $102 during the three months ended March 31, 2023, associated with the Company's sublease of its facility in Michigan. The Company had no sublease income during the three months ended March 31, 2022.
Right-of-use assets and lease liabilities for operating leases were recorded in the condensed consolidated balance sheets as follows:
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 2.88 years and 4.83 years, respectively and the weighted-average incremental borrowing rate for operating and finance leases was 7.11% and 8.06% as of March 31, 2023.
Supplemental cash flow information related to the Company’s leases was as follows:
As of March 31, 2023, future minimum lease payments required under operating and finance leases are as follows:
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 March 31, 2023, the Company had paid $16.3 million to Desktop Metal for equipment, materials and services received and placed purchase orders for another $3.7 million of equipment, materials and services to be purchased under the MOU. The timing of payments for these purchase orders may depend on a number of factors, including Desktop Metal's inventory management and logistics systems and the Company's ability to take delivery of any such equipment, materials and services. 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 March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023 and 2022.
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