Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

5. Leases

We lease 23,890 square feet of office space in Minneapolis, Minnesota, which houses our principal executive offices and our manufacturing facility. We lease this space under an operating lease agreement that commenced December 1, 2008 and expires July 31, 2024. We intend to add new facilities as we grow, and we believe that suitable additional or substitute space will be available as needed to accommodate any such expansion of our operations. Our operating lease agreement includes an option to renew for one additional period of five years. The exercise of the lease renewal option is at our sole discretion and was not included in the lease term for the calculation of the ROU asset and lease liability upon adoption of Accounting Standards Update 2016-02, Leases (Topic 842) on January 1, 2022, as it is not reasonably certain of exercise.

In addition to base rent, we will also pay our proportionate share of operating expenses, as defined in the lease. These payments will be made monthly and will be adjusted annually to reflect actual charges incurred for operating expenses, such as common area maintenance, taxes and insurance.

The following table presents the lease balances within the condensed consolidated balance sheets:

	March 31,
(in thousands)	2022
Right-of-use assets:
Operating lease right-of-use asset	$	522
Operating lease liabilities:
Accrued expenses		208
Operating lease liability, non-current portion		304
Total operating lease liabilities	$	512

Maturities of our lease liability for our operating lease are as follows as of March 31, 2022:

	March 31,
(in thousands)	2022
2022	$	171
2023		234
2024		139
Total undiscounted lease payments		544
Less: imputed interest		(32)
Present value of lease liability	$	512

As of March 31, 2022, the remaining lease term was 2.3 years and the discount rate was 5.0%. The operating cash outflows from our operating lease were $0.2 million for the three months ended March 31, 2022.