Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies

v3.20.4
Commitments and Contingencies
12 Months Ended
Dec. 31, 2020
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

20. COMMITMENTS AND CONTINGENCIES

Lease Commitments

The Company entered into various operating lease agreements that expire over various years in the next 7 years. The Company’s Milan office lease contains an option to renew the lease for 6 years under terms and conditions set forth in the lease agreement. Certain of the Company’s leases contain provisions for rental adjustments. Operating lease rentals are expensed on a straight-line basis over the life of the lease beginning on the date the Company takes possession of the property. Rent expense was $898,000 and $749,000 for the years ended December 31, 2020 and 2019, respectively.

Future minimum lease payments under leasing obligations as of December 31, 2020 are as follows (in thousands):

 

 

 

As of December 31, 2020

 

 

 

Operating leases

 

 

Capital leases

 

 

Total

 

2021

 

$

559

 

 

$

151

 

 

$

710

 

2022

 

 

489

 

 

 

78

 

 

 

567

 

2023

 

 

443

 

 

 

65

 

 

 

508

 

2024

 

 

350

 

 

 

65

 

 

 

415

 

2025

 

 

322

 

 

 

19

 

 

 

341

 

2026 and thereafter

 

 

136

 

 

 

 

 

 

136

 

Total Minimum Lease Payments

 

$

2,299

 

 

$

378

 

 

$

2,677

 

Future minimum lease payment under capital leases as of December 31, 2020, consisted of the following (in thousands):

 

 

 

As of December 31, 2020

 

 

 

Capital leases

 

Total payments

 

$

378

 

Less: Interest portion

 

 

32

 

Net capital lease obligation

 

 

346

 

Less: Current portion

 

 

138

 

Long term portion

 

$

208

 

The current portion of the capital lease obligation is included in other current liabilities and the long term portion is included in other long-term liabilities in the accompanying consolidated balance sheet.

Contingencies

As of December 31, 2020, the Company had contingent liabilities of $129,000, relating to a tax appeal of Solutions Infini for which no provision was recognized as its occurrence was deemed remote.