Leases

12 Months Ended

Dec. 31, 2023

Leases

Leases

7. Leases

On March 1, 2021, the Company entered into an office lease agreement (the “Lease”) with Globe Building Company (the “Landlord”), under which the Company leases executive office space and manufacturing facilities of approximately 43,100 square feet of rentable space located at 710 N. Tucker Boulevard, St. Louis, Missouri (the “Premises”) that serves as the Company’s new principal executive and administrative offices and manufacturing facility. Lease payments commenced on January 1, 2022, and the lease has a term of ten years, with two renewal options of five years each. The minimum annual rent under the terms of the Lease ranges from approximately $0.8 million in 2022 to $1.0 million in 2031.

As of December 31, 2023, the weighted average discount rate for operating leases was 9% and the weighted average remaining lease term for operating lease term is 7.99 years.

The following table represents lease costs and other lease information (in thousands):

	Year Ended December 31,
	2023		2022
Operating lease cost	$	908	$	909
Short-term lease cost		17		28
Total net lease cost	$	925	$	937
Cash paid within operating cash flows	$	1,000	$	1,126

Variable lease costs consist primarily of taxes, insurance, and common area or other maintenance costs for our leased facilities and equipment which are paid based on actual costs incurred.

Future minimum payments for operating leases with initial or remaining terms of one year or more as of December 31, 2023, were as follows (in thousands):

	December 31, 2023
2024	$	898
2025		919
2026		935
2027		956
2028		976
2029 and thereafter		3,054
Total lease payments	$	7,738
Less: Interest		(2,248	)
Present value of lease liabilities	$	5,490