Commitments and Contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies

Commitments and Contingencies

5. Commitments and Contingencies

Leases

Operating leases consist of fabrication, lab, and office space expiring at various dates through 2029. Finance leases relate to a server lease expiring in January 2025. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The undiscounted future non-cancellable lease payments under the Company’s operating and finance leases were as follows (in thousands):

As of December 31, 2023	Amount
2024	$	1,411
2025		1,416
2026		1,431
2027		1,314
2028		529
Thereafter		38
Total lease payments		6,139
Less: imputed interest		(559)
Total lease liabilities		5,580
Less: current portion of lease liabilities		(1,190)
Total lease liabilities, net of current portion	$	4,390

Other information related to the Company's operating lease liabilities was as follows:

	December 31,		December 31,
	2023		2022
Weighted-average remaining lease term (years)	4.37		5.35
Weighted-average discount rate	4.50	%	4.50	%

Other information related to the Company’s finance lease liabilities was as follows:

	December 31,		December 31,
	2023		2022
Weighted-average remaining lease term (years)	1.09		2.09
Weighted-average discount rate	4.50	%	4.50	%

Lease costs for the Company’s operating leases were $1.4 million for the years ended December 31, 2023 and 2022, respectively. Lease costs for the Company’s finance lease were immaterial for the years ended December 31, 2023 and 2022.

Legal Proceedings

From time to time, the Company may become involved in legal proceedings arising from the ordinary course of its business. Management is currently not aware of any matters that it expects will have a material adverse effect on the financial position, results of operations or cash flows of the Company.

Indemnifications

In the ordinary course of business, the Company enters into agreements that may include indemnification provisions. Pursuant to such agreements, the Company may indemnify, hold harmless and defend an indemnified party for losses suffered or incurred by the indemnified party. Some of the provisions will limit losses to those arising from third party actions. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amount of future payments the Company could be required to make under these provisions is not determinable. The Company has never incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. The Company has also entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers to the fullest extent permitted by Delaware corporate law. The Company currently has directors’ and officers’ insurance.