On January 11, 2021, the Company entered into a lease agreement (the “Dallas Lease”) with Pegasus Park, LLC, a Delaware limited liability company (the “Dallas Landlord”), pursuant to which the Company will lease approximately 15,000 square feet of office space at 3000 Pegasus Park Drive, Dallas, Texas 75247 (the “Office Space”).

The Dallas Lease commenced on May 27, 2021, and has a term of approximately ten years. The Company has an option to extend the term of the Dallas Lease for one additional period of five years.

The Company has a right of first refusal with respect to certain additional adjacent office space before the Dallas Landlord accepts any offer for such space.

The Dallas Landlord has the right to terminate the Dallas Lease, or the Company’s right to possess the Office Space without terminating the Dallas Lease, upon specified events of default, including the Company’s failure to pay rent in a timely manner and upon the occurrence of certain events of insolvency with respect to the Company.

On December 14, 2021, the Company amended the Dallas Lease (the “Dallas Lease Amendment”) with the Dallas Landlord, pursuant to which the Company will lease approximately 18,000 square feet of office space adjacent to the Office Space at 3000 Pegasus Park Drive, Dallas, Texas 75247 (the “Expansion Premises”).

The Dallas Lease Amendment commenced on July 1, 2022, and has a term of approximately ten years.

The Company is obligated to pay operating costs and utilities applicable to the Expansion Premises. Total future minimum lease payments under the Dallas Lease Amendment over the initial 10 year term are approximately $6.0 million. The Company will be responsible for costs of constructing interior improvements within the Expansion Premises that exceed a $40.00 per rentable square foot construction allowance provided by the Dallas Landlord.

The Company has a right of first refusal with respect to certain additional office space on the 15th floor at 3000 Pegasus Park Drive, Dallas, Texas 75247 before the Dallas Landlord accepts any offer for such space.

On December 17, 2020, the Company entered into a lease agreement (the “Durham Lease”) with Patriot Park Partners II, LLC, a Delaware limited liability company (the “Durham Landlord”), pursuant to which the Company agreed to lease approximately 187,500 square feet of a manufacturing facility located at 5 National Way, Durham, North Carolina (the “Facility”). The Durham Lease commenced on April 1, 2021 and is expected to have a term of approximately fifteen years and six months. The Company has two options to extend the term of the Durham Lease, each for a period of an additional five years.

The Company was not required to provide a security deposit in connection with its entry into the Durham Lease. The Company will be responsible for constructing interior improvements within the Facility. The Company was required to place $2.6 million in an escrow account which will be released when the improvements are substantially complete. The escrow funds are recorded as restricted cash on the consolidated balance sheet as of December 31, 2022. The Durham Landlord has the right to terminate the Durham Lease upon specified events of default, including the Company’s failure to pay rent in a timely manner and upon the occurrence of certain events of insolvency with respect to the Company.

In accordance with ASC Topic 840, Leases, the Company was deemed, for accounting purposes only, to be the owner of the entire leased Facility, including the building shell, during the construction period because of the Company’s level of direct financial and operational involvement in the substantial tenant improvements, including structural improvements, required to build out the Facility. As a result, the Company capitalized approximately $26.3 million as a build-to-suit asset within property, plant and equipment, net and recognized a corresponding build-to-suit lease financing obligation as a liability on its consolidated balance sheets equal to the fair value of the existing building shell using comparable market prices per square foot for similar space for public real estate transactions in the surrounding area at commencement of construction. Additionally, construction costs incurred as part of the build-out and tenant improvements were also capitalized within property, plant and equipment, net. Costs of approximately $45.8 million were capitalized during the year ended December 31, 2021, related to both equipment purchases and the build-out of the leased Facility. As part of its adoption of ASC 842, the Company de-recognized the building asset and corresponding financing obligation recorded on the Company’s consolidated balance sheets as of January 1, 2022, in accordance with the ASC 842 transition guidance.

The following table summarizes the lease costs recognized under ASC 842 and other information pertaining to the Company's operating leases for the year ended December 31, 2022 (in thousands):


	For the Year Ended December 31, 2022

Operating lease cost	$	2,873
Variable lease cost		452
Total lease cost	$	3,325

Supplemental information related to the remaining lease term and discount rate are as follows:


	December 31, 2022
Weighted average remaining lease term (in years) - Finance leases		3.88
Weighted average remaining lease term (in years) - Operating leases		11.45

Weighted average discount rate - Finance leases		10.51	%
Weighted average discount rate - Operating leases		7.72	%

As of December 31, 2022, future minimum commitments under ASC 842 under the Company's operating and finance leases were as follows (in thousands):


Year Ending December 31,	Operating			Finance
2023	$	2,819		$	454
2024		2,918			454
2025		3,021			454
2026		2,485			325
2027		2,577			73
Thereafter		19,721			—
Total lease payments		33,541			1,760
Less: imputed interest		(11,900	)		(308	)
Total lease liabilities	$	21,641		$	1,452
Lease liabilities, current		1,201			320
Lease liabilities, non-current		20,440			1,132
Total lease liabilities	$	21,641		$	1,452

In 2021, the Company signed a lease agreement pursuant to which the Company will lease equipment to generate its supply of electricity, which has not yet commenced for accounting purposes as of December 31, 2022. This lease agreement provides for total remaining lease payments of $3.5 million over the 10-year lease term, which is not included in the maturity table above.

The following table summarizes aggregate lease commitments as of December 31, 2021 (in thousands) under ASC 840:


Year Ending December 31,
2022	$	4,848
2023		4,201
2024		4,301
2025		4,372
2026		3,868
Thereafter		30,563
Total Lease Commitments	$	52,153