The Company’s operating lease obligation at its corporate headquarters in California consists of leased office, laboratory, and manufacturing space under a non-cancellable operating lease that expires in October 2024. The lease agreement includes a renewal provision allowing the Company to extend this lease for an additional period of five years. See also Note 10, Subsequent Events.

The Company’s non-cancelable operating lease obligation at its facilities in Minnesota consists of additional office, laboratory and manufacturing space and expires in November 2029. The lease agreement includes a renewal provision allowing the Company to extend this lease for two additional five year terms.

Operating lease costs were $408,000 and $365,000 for the three months ended March 31, 2023 and 2022, respectively. Cash paid (net of tenant improvement allowances received) for amounts included in the measurement of operating lease liabilities was $359,000 and $(704,000) for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, the weighted average discount rate was approximately 6.57% and the weighted average remaining lease term was 5.54 years. As of March 31, 2022, the weighted average discount rate was approximately 6.50% and the weighted average remaining lease term was 5.94 years. Balance sheet information as of March 31, 2023 and December 31, 2022 consists of the following (in thousands):


	March 31,		December 31,
Operating Lease:	2023		2022
Operating lease right-of-use assets in other non-current assets	$	4,800	$	5,081
Operating lease liabilities in accrued liabilities	$	1,874	$	1,844
Operating lease liabilities in other liabilities		5,609		5,998
Total operating lease liabilities	$	7,483	$	7,842

The following table summarizes the Company’s operating lease payments as of March 31, 2023 (in thousands):



Period Ending December 31:	Amount
2023	$	1,481
2024		1,764
2025		1,079
2026		1,173
2027 and thereafter		3,593
Total lease payments	$	9,090
Less: imputed interest		(1,607)
Present value of lease liabilities	$	7,483

Purchase Obligations

Purchase obligations consist of agreements to purchase goods and services entered into in the ordinary course of business. As of March 31, 2023, the Company had non-cancellable purchase obligations to suppliers of $17,370,000.

Indemnification

In the normal course of business, the Company enters into contracts and agreements with suppliers and other parties that contain a variety of representations and warranties and may provide for indemnification of the counterparty. The Company’s exposure under these agreements is unknown because it involves claims that may be made against it in the future but have not yet been made. To date, the Company has not been subject to any claims or been required to defend any action related to its indemnification obligations.

The Company indemnifies each of its directors and officers for certain events or occurrences, subject to certain limits, while the director or officer is or was serving at the Company’s request in such capacity, as permitted under Delaware law and in accordance with its certificate of incorporation and bylaws. The term of the indemnification period lasts as long as a director or officer may be subject to any proceeding arising out of acts or omissions of such director or officer in such capacity. The maximum amount of potential future indemnification is unlimited; however, the Company currently holds director and officer liability insurance. The Company believes that the fair value of these indemnification obligations is minimal. Accordingly, the Company has not recognized any liabilities relating to these obligations as of March 31, 2023.

Contingencies

The Company is not involved in any pending legal proceedings that it believes could have a material adverse effect on its financial condition, results of operations or cash flows. From time to time, the Company may pursue litigation to assert its