General form of registration statement for all companies including face-amount certificate companies

LEASES

v3.21.2
LEASES
3 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2020
LEASES    
LEASES

14. LEASES

At March 31, 2021, the Company recorded $3.7 million as a right of use asset and $4.9 million as an operating lease liability. At December 31, 2020, the Company recorded $1.8 million as a right of use asset and $3.0 million as an operating lease liability. The Company assesses its right of use asset and other lease-related assets for impairment. There were no impairments recorded related to these assets during the three months ended March 31, 2021 and the year ended December 31, 2020.

As a result of the acquisition of EnvisionTEC, the Company acquired operating, short-term, and finance leases for corporate offices, manufacturing and warehouse facilities, and machineries, increasing the Company’s right of use asset by $1.8 million. The operating leases consist of five real estate leases and six equipment leases with current terms extending from 2021 to 2024. The Company’s finance leases are immaterial as of March 31, 2021.

The Company reviews all supplier, vendor, and service provider contracts to determine whether any service arrangements contain a lease component. The Company identified two service agreements that contained an embedded lease. The agreements do not contain fixed or minimum payments, and the Company has concluded that the variable lease expense was immaterial during the three months ended March 31, 2021 and 2020, respectively.

Information about other lease-related balances is as follows (in thousands):

March 31, 

 

2021

2020

 

Lease cost

 

  

 

  

Operating lease cost

$

323

$

188

Short‑term lease cost

 

22

 

Variable lease cost

 

39

 

10

Total lease cost

$

384

$

198

Other Information

 

  

 

  

Operating cash flows used in operating leases

$

244

$

268

Weighted‑average remaining lease term—operating leases (years)

 

2.9

 

4.0

Weighted‑average discount rate—operating leases

 

5.5

%  

 

7.6

%

The rate implicit in the lease is not readily determinable in most of the Company’s leases, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease.

Future minimum lease payments under noncancelable operating leases, including immaterial future minimum lease payments under finance leases, at March 31, 2021, are as follows (in thousands):

Operating Leases

2021 (remaining 9 months)

$

1,399

2022

 

1,862

2023

 

1,671

2024

 

370

2025

 

Total lease payments

 

5,302

Less amount representing interest

 

(415)

Total lease liability

 

4,887

Less current portion of lease liability

 

(1,639)

Lease liability, net of current portion

$

3,248

As of March 31, 2021, the Company does not have material operating or finance leases that have not commenced.

14. LEASES

At December 31, 2020, the Company recorded $1.8 million as a right of use asset and $3.0 million as an operating lease liability. At December 31, 2019, the Company recorded $2.3 million as a right of use asset and $3.8 million as an operating lease liability. The Company assesses its right of use asset and other lease-related assets for impairment. There were no impairments recorded related to these assets during the years ended December 31, 2020 and 2019.

The Company identified one service agreement that contained an embedded lease. The agreement does not contain fixed or minimum payments, but the Company has concluded that the variable lease expense was immaterial during the years ended December 31, 2020 and 2019, respectively.

Information about other lease-related balances is as follows (in thousands):

Years Ended December 31, 

 

    

2020

    

2019

 

Lease cost

  

 

  

Operating lease cost

$

746

$

655

Short‑term lease cost

 

 

32

Variable lease cost

 

40

 

40

Total lease cost

$

786

$

727

Other Information

 

  

 

  

Operating cash flows from operating leases

$

1,073

$

951

Weighted‑average remaining lease term—operating leases (years)

 

3.2

 

4.2

Weighted‑average discount rate—operating leases

 

7.6

%  

 

7.6

%

The rate implicit in the lease is not readily determinable in most of the Company’s leases, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease.

Future minimum lease payments under noncancelable operating leases at December 31, 2020, are as follows (in thousands):

2021

    

$

1,071

2022

 

1,069

2023

 

1,028

2024

 

258

2025

 

Total lease payments

 

3,426

Less amount representing interest

 

(401)

Total lease liability

 

3,025

Less current portion of lease liability

 

(868)

Lease liability, net of current portion

$

2,157

As of December 31, 2020, the Company does not have material operating leases that have not commenced.