The Company may be involved from time to time in legal proceedings, claims and assessments arising from the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. During 2022, a former employee who was terminated in 2021 brought an age discrimination claim against the Company. During the fourth quarter of 2023, the Company settled the claim with the former employee. The Company deemed it probable that its insurance company would pay its share of the claim. As a result of this assumed gain contingency, the Company reduced its accrual to an amount that is not expected to be covered by insurance, and recorded a liability of approximately $55,000 for severance and legal expenses as of December 31, 2023. The settlement was paid and all insurance proceeds were received during the three months ended March 31, 2024. There is no other material litigation against the Company at this time.

The Company has a non-cancelable sublease agreement for its corporate headquarters in Boston, Massachusetts, which expires in January 2025 and a lease agreement for office space in Fort Worth, TX. which expires in December 2025. Termination options are either not included, or have expired, 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 condensed consolidated balance sheets. We recognize rent expense on a straight-line basis over the lease term.

As of June 30, 2024, operating lease assets were approximately $539,500. The amount and the maturity of the Company’s operating lease liabilities as of June 30, 2024, are as follows:


	June 30, 2024
2024		289,220
2025		102,841
2026		—
2027		—
Thereafter		—
Total future minimum lease payments		392,061
Less imputed interest		28,123
Total operating lease liabilities	$	363,938
Included in the condensed consolidated balance sheet:
Current operating lease liabilities	$	316,600
Non-current operating lease liabilities		47,338
Total operating lease liabilities	$	363,938

For the three and six months ended June 30, 2024 and 2023, the total lease cost is comprised of the following amounts:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2024		2023		2024		2023
Operating lease expense		87,835		125,650		175,671		251,299
Short-term lease expense		1,608		—		3,268		—
Total lease expense	$	89,443	$	125,650	$	178,939	$	251,299

The following summarizes additional information related to operating leases:


	June 30, 2024			December 31, 2023
Weighted-average remaining lease term (in years)		0.79			1.20
Weighted-average discount rate		23.3	%		23.3	%

For the three and six months ended June 30, 2024 and 2023, there were no customers which accounted for more than 10% of product revenues. For the three and six months ended June 30, 2024, a U.S. insurance payer represented 20% and 24% of product revenues, respectively. For the three and six months ended June 30, 2024, patients with Medicare Part B coverage represented 47% and 35% of product revenues, respectively. For the three and six months ended June 30, 2023, a U.S. insurance payer represented 41% and 42% of product revenues, respectively.

At June 30, 2024 and December 31, 2023, one insurance payer and its affiliates accounted for approximately 37% and 38% of accounts receivable, respectively.

For the three and six months ended June 30, 2024, approximately 26% and 30% 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, 2023, approximately 63% and 59% of the Company's product revenues were derived from patients with Medicare advantage insurance plans, respectively.

The Company finances its Directors and Officers Insurance policy, which requires the Company to make a down payment, followed by equal payments over a defined term. During the year ended December 31, 2023, the Company completed its payment obligation associated with its 2022-2023 policy and entered into a new policy covering the twelve-month period ending June 2024. Under this financing arrangement, the Company made a down payment of approximately $29,000 during the three months ended June 30, 2023 and made nine equal monthly payments of approximately $27,000, starting in July 2023. During the three and six months ended June 30, 2024, the Company completed its payment obligation associated with its 2023-2024 policy and entered into a new policy covering the twelve-month period ending June 2025. Under this new financing arrangement, the Company made a down payment of approximately $39,000 during the three months ended June 30, 2024, and is making nine equal monthly payments of approximately $39,000, starting in July 2024. Changes in the Company's supplier finance obligations were as follows:



For the Six Months Ended June 30,	2024			2023
Balance January 1	$	142,217		$	56,603
Increase		—			128,692
Expensed		(80,109	)		(132,988	)
Balance March 31,	$	62,108		$	52,307
Increase		349,909			375,824
Expensed		(78,593	)		(155,076	)
Balance June 30,	$	333,424		$	273,055