LEASES

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

LEASES

LEASESWe determine if an arrangement is a lease at inception and whether the arrangement is classified as an operating or finance lease. At commencement of the lease, we record a right-of-use (“ROU”) asset and lease liability in the balance sheet based on the present value of lease payments over the term of the arrangement. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. If the implicit rate is not readily determinable in the contract, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Contract terms may

include options to extend or terminate the lease, and, when we deem it is reasonably certain that we will exercise that option, it is included in the ROU asset and liability.

Operating leases reflect lease expense on a straight-line basis, while any finance leases result in the separate presentation of interest expense on the lease liability and amortization expense of the ROU asset.

We have operating leases for our corporate headquarters and our manufacturing and research facility, which expire in 2024. We were obligated under finance leases for certain research and computer equipment, of which the last arrangement expired in July 2023.

The components of lease cost are as follows (in thousands):

	Years Ended December 31,
	2022		2021
Operating lease cost	$	222	$	222
Finance lease cost:
Amortization of ROU asset	35		86
Interest on lease liability	1		6
Total finance lease cost	$	36	$	92

As of December 31, 2022, maturities of operating lease liabilities are follows (in thousands):

Years Ending December 31:
2023	$	198
2024	186
Total operating lease payments	384
Less imputed interest	(25)
Total operating lease liabilities	$	359

LEASES

LEASESWe determine if an arrangement is a lease at inception and whether the arrangement is classified as an operating or finance lease. At commencement of the lease, we record a right-of-use (“ROU”) asset and lease liability in the balance sheet based on the present value of lease payments over the term of the arrangement. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. If the implicit rate is not readily determinable in the contract, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Contract terms may

include options to extend or terminate the lease, and, when we deem it is reasonably certain that we will exercise that option, it is included in the ROU asset and liability.

Operating leases reflect lease expense on a straight-line basis, while any finance leases result in the separate presentation of interest expense on the lease liability and amortization expense of the ROU asset.

We have operating leases for our corporate headquarters and our manufacturing and research facility, which expire in 2024. We were obligated under finance leases for certain research and computer equipment, of which the last arrangement expired in July 2023.

The components of lease cost are as follows (in thousands):

	Years Ended December 31,
	2022		2021
Operating lease cost	$	222	$	222
Finance lease cost:
Amortization of ROU asset	35		86
Interest on lease liability	1		6
Total finance lease cost	$	36	$	92

As of December 31, 2022, maturities of operating lease liabilities are follows (in thousands):

Years Ending December 31:
2023	$	198
2024	186
Total operating lease payments	384
Less imputed interest	(25)
Total operating lease liabilities	$	359