Annual report pursuant to Section 13 and 15(d)

Leases

v3.22.1
Leases
12 Months Ended
Jan. 02, 2022
Leases [Abstract]  
Leases

Note 6. Leases

The Company leases its headquarters, engineering and manufacturing space in Fremont, California under a single non-cancelable operating lease, right of use asset with an expiration date of August 31, 2030. In March 2021, the Company entered into a new agreement

to lease office space in Fremont, California under a noncancelable operating lease that expires in April 2026 with an option to extend for five years.

The components of lease costs were as follows (in thousands):

 

 

Year Ended
January 2, 2022

 

Operating lease cost

 

$

1,535

 

 

Supplemental lease information:

 

Operating leases

 

January 2, 2022

Weighted-average remaining lease term

 

8.7 years

Weighted-average discount rate

 

6.8%

Supplemental cash flow information related to leases are as follows (in thousands):

 

 

Year Ended
January 2, 2022

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

Operating cash flows from operating leases

 

$

1,418

 

Lease liabilities arising from obtaining ROU assets:

 

 

 

Operating leases

 

 

8,763

 

 

Maturities of Lease Liabilities

The following is a schedule of maturities of lease liabilities as of January 2, 2022 (in thousands).

 

 

Operating lease

 

2022

 

$

1,366

 

2023

 

 

1,406

 

2024

 

 

1,449

 

2025

 

 

1,492

 

2026

 

 

1,491

 

Thereafter

 

 

5,774

 

Total

 

 

12,978

 

Less: imputed interest

 

 

(3,375

)

Present value of lease liabilities

 

$

9,603

 

 

Prior Year Lease Disclosure under ASC 840

Under the legacy accounting guidance ASC 840, rent expense for the fiscal year 2020 was $1.4 million.

Minimum commitments under noncancelable operating lease agreements as of December 31, 2020 is as follows (in thousands):

 

 

Operating lease

 

2021

 

$

1,267

 

2022

 

 

1,305

 

2023

 

 

1,344

 

2024

 

 

1,384

 

2025

 

 

1,426

 

Thereafter

 

 

7,243

 

Total

 

$

13,969