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Commitments and Contingencies
6 Months Ended
Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 9 — Commitments and Contingencies

Litigation

We are not currently a party to any material legal proceedings, and we are not aware of any pending or threatened litigation against us that could have a material adverse effect on our business, operating results or financial condition.

 

Operating Leases

 

The Company has a non-cancelable sublease agreement for its corporate headquarters in Boston, MA expiring in 2023, and it has a non-cancelable lease agreement for its manufacturing space in Boston and office space in Fort Worth, TX both expiring in 2025 with early termination available at the company’s discretion in 2023. Termination options were not included in the lease term for the Company’s existing operating leases. Certain arrangements have discounted rent periods or escalating rent payment provisions. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheets. We recognize rent expense on a straight-line basis over the lease term.

 

As of June 30, 2022, operating lease assets were $695,933. The amount and the maturity of the Company’s operating lease liabilities as of June 30, 2022, are as follows:

 

 

 

 

 

 

 

 

 

June 30, 2022

 

2022 (June 30 - December 31)

 

 

 

 

 

 

 

$

275,625

 

2023

 

 

 

 

 

 

 

 

411,142

 

2034

 

 

 

 

 

 

 

 

159,872

 

2025

 

 

 

 

 

 

 

 

67,981

 

2026

 

 

 

 

 

 

 

 

 

Thereafter

 

 

 

 

 

 

 

 

 

Total future minimum lease payments

 

 

 

 

 

 

 

 

914,620

 

Less imputed interest

 

 

 

 

 

 

 

 

149,197

 

Total operating lease liabilities

 

 

 

 

 

 

 

$

765,423

 

Included in the condensed consolidated balance sheet:

 

 

 

 

 

 

 

 

 

Current operating lease liabilities

 

 

 

 

 

 

 

$

436,694

 

Non-current operating lease liabilities

 

 

 

 

 

 

 

 

328,729

 

Total operating lease liabilities

 

 

 

 

 

 

 

$

765,423

 

 

For the three and six months ended June 30, 2022 and 2021, the total lease cost is comprised of the following amounts:

 

 

 

For the Three Months
Ended June 30,

 

 

For the Six Months
Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Operating lease expense

 

 

125,293

 

 

 

102,963

 

 

 

241,904

 

 

 

170,472

 

Short-term lease expense

 

 

1,300

 

 

 

2,175

 

 

 

3,250

 

 

 

25,859

 

Total lease expense

 

$

126,593

 

 

$

105,138

 

 

$

245,154

 

 

$

196,331

 

 

The following summarizes additional information related to operating leases:

 

 

 

 

 

 

 

 

 

June 30, 2022

 

Weighted-average remaining lease term (in years)

 

 

 

 

 

 

 

 

2.1

 

Weighted-average discount rate

 

 

 

 

 

 

 

 

20

%

Major Customers

 

For the three and six months ended June 30, 2022 and 2021, there were no customers which accounted for more than 10% of product revenues. For the three and six months ended June 30, 2022 a U.S. insurance payer represented 28% and 31% of product revenues, respectively. For the three and six months ended June 30, 2021 a U.S. insurance payer represented 30% and 28% of product revenues, respectively.

 

At both June 30, 2022 and 2021, one insurance company and its affiliates accounted for approximately 68% of accounts receivable, respectively.

 

For the three and six months ended June 30, 2022 , approximately 71% and 63% of the Company's product revenues, respectively, were derived from patients with Medicare Advantage insurance plans. For the three and six months ended June 30, 2021, approximately 52% and 54% of the Company’s product revenues were derived from patients with Medicare Advantage insurance plans, respectively.