Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

v3.21.2
Commitments and Contingencies
9 Months Ended
Sep. 30, 2021
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

15. COMMITMENTS AND CONTINGENCIES

Lease Commitments

The Company entered into various operating lease agreements that expire over various years in the next seven years. The Company’s Milan office lease contains an option to renew the lease for six 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 $426,000 and $233,000 for the three months ended September 30, 2021 and 2020, respectively, and $867,000 and $674,000 for the nine months ended September 30, 2021 and 2020, respectively.

Future minimum lease payments under leasing obligations as of September 30, 2021 are as follows (in thousands):

 

 

 

As of September 30, 2021

 

 

 

Operating Leases

 

 

Capital Leases

 

 

Total

 

2021 (remaining three months)

 

$

450

 

 

$

36

 

 

$

486

 

2022

 

 

1,340

 

 

 

74

 

 

 

1,414

 

2023

 

 

746

 

 

 

61

 

 

 

807

 

2024

 

 

637

 

 

 

61

 

 

 

698

 

2025

 

 

425

 

 

 

18

 

 

 

443

 

2026 and thereafter

 

 

129

 

 

 

 

 

 

129

 

Total minimum lease payments

 

$

3,727

 

 

$

250

 

 

$

3,977

 

 

 

Future minimum lease payment under capital leases as of September 30, 2021 consisted of the following (in thousands):

 

 

 

As of September 30, 2021

 

 

 

Capital Leases

 

Total payments

 

$

250

 

Less: interest portion

 

 

19

 

Net capital lease obligation

 

 

231

 

Less: current portion

 

 

86

 

Long term portion

 

$

145

 

The current and long term portion of the future minimum lease payments under capital lease are included in the condensed consolidated balance sheet line item “Other current liabilities” and “Other long-term liabilities”, respectively.

Contingencies

As of September 30, 2021, the Company had contingent liabilities of $127,000, relating to a tax appeal of Solutions Infini for which no provision was recognized as its occurrence was deemed remote.