Leases |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases | Leases
As described in Note 2, we adopted ASU 2016-02, Leases (Topic 842), as of January 1, 2021. We lease our corporate offices under operating leases and determine if an arrangement is or contains a lease at inception. The initial terms of our real property lease agreements are generally five years and typically allow for renewals in five-year increments. We may, at times, negotiate a shorter lease renewal term. We generally do not account for any renewals at the lease adoption date. We maintain four corporate offices located in Austin, Texas; Irvine, California; San Diego, California; and Miami, Florida. Our Lyte operations are currently located in Gurnee, Illinois. We lease office and warehouse space for Lyte under a month-to-month lease. Excluding our month-to-month lease, as of December 31, 2021, the earliest lease agreement currently ends in March 2022 with the latest terminating in June 2025.
Some of our leases include both lease and non-lease components, which we have elected not to account for separately. Lease components generally include rent, taxes and insurance, while non-lease components generally include common area or other maintenance.
The weighted-average remaining lease term for our operating leases as of December 31, 2021 was 3.14 years. As our leases generally do not include an implicit rate, we compute our incremental borrowing rate based on information available at the lease commencement date applying a rate to each lease. We used incremental borrowing rates that match the duration of the remaining lease terms of our operating leases on a fully collateralized basis upon adoption as of January 1, 2021 to initially measure our lease liability. The weighted average incremental borrowing rate used to measure our lease liability was 19.13%.
We recognize lease expense on a straight-line basis over the lease term with variable lease expense recognized in the period in which the costs are incurred. The components of lease expense are included in general and administrative expense in our consolidated statement of operations and comprehensive loss. Rent expense under operating leases totaled $809 and $843 for the years ended December 31, 2021 and 2020, respectively.
Future minimum annual lease payments under the Company’s operating leases are as follows:
On March 16, 2021, we entered into a sublease agreement pursuant to which we will sublease our existing office space in Irvine, California. The term of the sublease commenced on April 1, 2021 and terminates on March 31, 2025. The subtenant will pay us initial base rent of approximately $17 per month, which is subject to certain discounts throughout the sublease, as well as rent escalations. We recognized an impairment of our right-to-use asset related to the sublease of $77, which is recorded as a component of other income, net in our consolidated statement of operations and comprehensive loss for the year ended December 31, 2021. We recognized $154 of sublease income related to our Irvine, California lease for the year ended December 31, 2021.
On December 21, 2021, we entered into a sublease agreement pursuant to which we will sublease our existing office space in Miami, Florida. The term of the sublease commenced on January 18, 2022 and terminates on June 30, 2023. The subtenant will pay us initial base rent of approximately $8 per month, which is subject to rent escalations throughout the term. We recognized an impairment of our right-to-use asset related to the sublease of $51, which is recorded as a component of other income, net in our consolidated statement of operations and comprehensive loss for the year ended December 31, 2021.
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