Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

v3.22.1
Commitments and Contingencies
3 Months Ended
Mar. 31, 2022
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 $420,000 and $192,000 for the three months ended March 31, 2022 and 2021, respectively.

Future minimum lease payments under leasing obligations as of March 31, 2022 are as follows (in thousands):

 

 

 

As of March 31, 2022

 

 

 

Operating Leases

 

 

Capital Leases

 

 

Total

 

2022 (remaining nine months)

 

$

1,111

 

 

$

44

 

 

$

1,155

 

2023

 

 

889

 

 

 

58

 

 

 

947

 

2024

 

 

753

 

 

 

58

 

 

 

811

 

2025

 

 

571

 

 

 

20

 

 

 

591

 

2026

 

 

343

 

 

 

 

 

 

343

 

2027 and thereafter

 

 

678

 

 

 

 

 

 

678

 

Total minimum lease payments

 

$

4,345

 

 

$

180

 

 

$

4,525

 

 

Future minimum lease payment under capital leases as of March 31, 2022 consisted of the following (in thousands):

 

 

 

As of March 31, 2022

 

 

 

Capital Leases

 

Total payments

 

$

180

 

Less: interest portion

 

 

14

 

Net capital lease obligation

 

$

166

 

Less: current portion

 

 

53

 

Long term portion

 

$

113

 

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 March 31, 2022, the Company had contingent liabilities of $125,000, relating to a tax appeal of Solutions Infini for which no provision was recognized as its occurrence was deemed remote.