As of March 31, 2024, the Company leases office space in Dallas, TX, Davis and Sacramento, CA, as well as additional buildings, land and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these short-term leases on a straight-line basis. The Company subleases the Davis office to third parties.

Some leases (the Dallas and Davis offices, a warehouse, and a copy machine) include one or more options to renew, with renewal terms that can extend the lease term from one to six years. The exercise of lease renewal options is at the Company’s sole discretion. In January 2024, the Company exercised it's option to renew the facility lease in American Falls, Idaho for one year through December 31, 2024.

The Company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or material restrictive covenants. Leases consisted of the following (in thousands):


Leases	Classification	March 31, 2024		December 31, 2023
Assets
Operating lease assets	Right of use asset	$	695	$	792
Total leased assets		$	695	$	792
Liabilities
Current - Operating	Operating lease liability- current	$	801	$	852
Noncurrent - Operating	Operating lease liability- noncurrent		21		155
Total leased liabilities		$	822	$	1,007


Lease Cost	Classification	Three Months Ended March 31, 2024			Three Months Ended March 31, 2023
Operating lease cost	SG&A and R&D Expenses	$	265		$	191
Short term lease cost	SG&A Expenses		3			3
Sublease income (1)	SG&A and R&D Expenses		(121	)		(108	)
Net lease cost		$	147		$	86

(1)

Sublease income is recorded as a reduction to lease expense.


Lease Term and Discount Rate	March 31, 2024			December 31, 2023
Weighted-average remaining lease term (years)		1.1			2.3
Weighted-average discount rate		6.7	%		6.0	%