Note 8 – Leases

The Company has various lease agreements , including leases of office space, a laboratory and manufacturing facility, and various equipment. Some leases include purchase, termination or extension options for one or more years. These options are included in the lease term when it is reasonably certain that the option will be exercised.

The assets and liabilities from operating and finance leases are recognized at the lease commencement date based on the present value of remaining lease payments over the lease term using the Company’s incremental borrowing rates or implicit rates, when readily determinable. Short-term leases, which have an initial term of 12 months or less, are not recorded on the balance sheet. The Company’s operating leases do not provide implicit rates, therefore the Company utilized a discount rate based on its incremental borrowing rate to record the lease obligations. The Company’s finance leases provide readily determinable implicit rates.

Operating lease obligations

The Company incurred lease expense for its operating leases of approximately $226 thousand and $203 thousand for the three months ended March 31, 2022 and 2021, respectively. The Company incurred amortization expense on its operating lease right-of-use assets of approximately $136 thousand and $127 thousand for the three months ended March 31, 2022 and 2021, respectively.

Finance Leases

The Company incurred interest expense on its finance leases of approximately $1 thousand for the three months ended March 31, 2022 and 2021. The Company incurred amortization expense on its finance lease right-of-use assets of approximately $6 thousand and $12 thousand for the three months ended March 31, 2022 and 2021, respectively.

The following table presents information about the amount and timing of liabilities arising from the Company’s operating leases and finance leases as of March 31, 2022:

 Schedule of Maturity of Operating and Finance Leases Liabilities

The following table presents information about the amount and timing of liabilities arising from the Company’s operating leases and finance leases as of December 31, 2021: