Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

v3.21.1
Commitments and Contingencies
3 Months Ended
Mar. 31, 2021
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

14. 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 $192,000 and $235,000 for the three months ended March 31, 2021 and 2020, respectively.

Future minimum lease payments under leasing obligations as of March 31, 2021 are as follows (in thousands):

 

 

 

As of March 31, 2021

 

 

 

Operating leases

 

 

Capital leases

 

 

Total

 

2021 (remaining nine months)

 

$

491

 

 

$

109

 

 

$

600

 

2022

 

 

528

 

 

 

75

 

 

 

603

 

2023

 

 

434

 

 

 

62

 

 

 

496

 

2024

 

 

335

 

 

 

62

 

 

 

397

 

2025

 

 

308

 

 

 

18

 

 

 

326

 

2026 and thereafter

 

 

130

 

 

 

 

 

 

130

 

Total minimum lease payments

 

$

2,226

 

 

$

326

 

 

$

2,552

 

 

Future minimum lease payment under capital leases as of March 31, 2021, consisted of the following (in thousands):

 

 

 

As of March 31, 2021

 

 

 

Capital leases

 

Total payments

 

$

326

 

Less: interest portion

 

 

26

 

Net capital lease obligation

 

 

300

 

Less: current portion

 

 

125

 

Long term portion

 

$

175

 

 

 

Contingencies

As of March 31, 2021, the Company had contingent liabilities of $128,000, relating to a tax appeal of Solutions Infini for which no provision was recognized as its occurrence was deemed remote.