Leases

3 Months Ended

Mar. 31, 2024

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 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 March 31, 2024, the weighted average discount rate for operating leases was 9% and the weighted average remaining lease term for operating lease term is 7.74 years.

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

	Three Months Ended March 31,
	2024		2023
Operating lease cost	$	227	$	227
Short-term lease cost		3		4
Total net lease cost	$	230	$	231
Cash paid within operating cash flows	$	258	$	242

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 March 31, 2024, were as follows (in thousands):

2024	$	674
2025		919
2026		935
2027		956
2028		976
2029 and thereafter		3,054
Total lease payments		7,514
Less: Interest		(2,126	)
Present value of lease liabilities	$	5,388