Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Sep. 30, 2022



Our adoption of Accounting Standards Update 2016-02, Leases (Topic 842), and subsequent Accounting Standards Updates related to Topic 842, requires us to recognize substantially all leases on the balance sheet as a Right of Use asset and a corresponding lease liability. The new guidance also requires additional disclosures as detailed below. We adopted this standard on the effective date of January 1, 2019 and used this effective date as the date of initial application. Under this application method, we were not required to restate prior period financial information or provide Topic 842 disclosures for prior periods. We elected the ‘package of practical expedients,’ which permitted us to not reassess our prior conclusions related to lease identification, lease classification, and initial direct costs, and we did not elect the use of hindsight.


Lease ROU assets and liabilities are recognized at commencement date of the lease, based on the present value of lease payments over the lease term. The lease ROU asset also includes any lease payments made and excludes any lease incentives. When readily determinable, we use the implicit rate in determining the present value of lease payments. When leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date, including the lease term.


Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for short-term leases is recognized on a straight-line basis over the lease term. As of September 30, 2022, we did not have any short-term leases.


The tables below present financial information associated with our lease.



    Balance Sheet Classification   September 30, 2022     December 31, 2021  
Right-of-use assets   Other long-term assets     4,715       12,821  
Current lease liabilities   Other current liabilities     4,987       13,909  
Non-current lease liabilities   Other long-term liabilities            



As of September 30, 2022, the maturities of our lease liability are as follows:



2022   $ 4,987  
Less: Imputed interest     (272 )
Present value of lease liabilities   $ 4,715