Quarterly report pursuant to Section 13 or 15(d)

Leases

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Leases
3 Months Ended
Mar. 31, 2024
Leases  
Leases

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 $226 for each of the three month periods ended March 31, 2024 and 2023, respectively. The Company incurred amortization expense on its operating lease right-of-use assets of $145 and $132 for the three months ended March 31, 2024 and 2023, respectively.

 

 

Finance Leases

 

The Company incurred interest expense on its finance leases of $1 for the three months ended March 31, 2024 and 2023. The Company incurred amortization expense on its finance lease right-of-use assets of $1 and $4 for the three months ended March 31, 2024 and 2023, 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, 2024:

 

Maturity of Lease Liabilities  

Operating Lease

Liabilities

   

Finance Lease

Liabilities

 
Remainder of 2024   $ 721     $ 5  
2025     998       7  
2026     1,040       7  
2027     944       7  
2028     273        
Thereafter     138        
2028     273        
Thereafter     138       -  
Total undiscounted operating lease payments   $ 4,114     $ 26  
Less: Imputed interest     736       5  
Present value of operating lease liabilities   $ 3,378     $ 21  
                 
Weighted average remaining lease term in years     4.1       3.7  
Weighted average discount rate     9.2 %     11.6 %

 

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, 2023:

 

Maturity of Lease Liabilities  

Operating Lease

Liabilities

   

Finance Lease

Liabilities

 
2024   $ 956     $ 7  
2025     998       7  
2026     1,040       7  
2027     944       7  
2028     273        
Thereafter     138       -  
Total undiscounted operating lease payments   $ 4,349     $ 28  
Less: Imputed interest     816       5  
Present value of operating lease liabilities   $ 3,533     $ 23  
                 
Weighted average remaining lease term in years     4.3       3.9  
Weighted average discount rate     9.2 %     11.6 %