The Company is not a party to any material legal proceedings and is not aware of any pending or threatened claims. From time to time, the Company may be subject to various legal proceedings and claims that arise in the ordinary course of its business activities.

In the normal course of business, the Company enters into contracts that contain a variety of indemnifications with its employees, licensors, suppliers and service providers. The Company’s maximum exposure under these arrangements is unknown at December 31, 2021. The Company does not anticipate recognizing any significant losses relating to these arrangements.

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, 2021 and are expected to be released in 2023. 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.

The Company incurred initial direct costs to enter into the Durham Lease of approximately $0.8 million. The costs have been recorded on the consolidated balance sheets as a deferred lease asset and are being amortized into earnings over the term of the Durham Lease.

In accordance with ASC Topic 840, Leases, the Company is 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 are also capitalized within property, plant and equipment, net. Costs of approximately $45.8 million have been capitalized during the year ended December 31, 2021, related to both equipment purchases and the build-out of the leased Facility. The Company will assess and determine if the build-to-suit asset and corresponding liability should be derecognized upon completion of construction.

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’s obligation for the payment of base rent for the Office Space is initially approximately $32,500 per month and will increase annually, up to an estimated monthly base rent of $50,000 during the term of the Dallas Lease. The Company is obligated to pay operating costs and utilities applicable to the Office Space. Total future minimum lease payments under the Dallas Lease over the initial 10 year term are approximately $4.9 million. The Company is responsible for costs of constructing interior improvements within the Office Space that exceed $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 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.

As of December 31, 2021, the Company recognized approximately $0.6 million of lease construction incentive based on the construction allowance provided. The construction incentive has been recorded on the consolidated balance sheets as a deferred lease incentive obligation and is being amortized into earnings as a deduction of rent expense over the term of the Dallas Lease.

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 commences on the date on which certain improvements to the Expansion Premises have been made and the Expansion Premises is tendered to the Company for possession, which the Company and the Dallas Landlord presently anticipate to be delivered on or about June 1, 2022, and will have a term of approximately ten years. The Company’s obligation for the payment of base rent for the Expansion Premises will initially be approximately $40,000 per month and will increase annually, up to an estimated monthly base rent of $62,000 during the term of the Dallas Lease Expansion.

The Company is obligated to pay operating costs and utilities applicable to the Expansion Premises. Total future minimum lease payments under the Dallas Lease 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 15^th floor at 3000 Pegasus Park Drive, Dallas, Texas 75247 before the Dallas Landlord accepts any offer for such space.

On June 30, 2021, the Company entered into a lease agreement (the “On-site Generation Lease”) with an Electricity Utility Company (the “On-site Generation Landlord”), pursuant to which the Company will lease equipment to generate its supply of electricity (the “Leased Equipment”).

The On-site Generation Lease has not commenced as of December 31, 2021, as the Company does not have the right to operate nor control the leased equipment. The On-site Generation Lease will have an initial term of ten years, and will automatically renew annually thereafter until terminated. The Company’s obligation for the payment of fees for the Leased Equipment and monthly maintenance and fuel acquisition costs (the “Monthly Rate”) is $29,465 per month and eight advanced monthly payments of $126,500. Total future minimum lease payments under the On-site Generation Lease over the initial ten-year term, including the advanced payments, are approximately $4.5 million.

The On-site Generation Landlord has the right to terminate the lease upon breach of a material provision of the On-site Generation Lease, including the Company’s failure to pay financial obligations in a timely manner.

On December 21, 2021, the Company entered into a lease agreement for a Central Utilities Building (the “CUB Lease”) with an Electricity Utility Company (the “CUB Landlord”), pursuant to which the Company will lease equipment to maintain and distribute its supply of electricity (the “Leased CUB”).

The CUB Lease has not commenced as of December 31, 2021, as the Company does not have the right to operate nor control the leased equipment. The CUB Lease will have an initial term of ten years. After the initial term CUB Lease will renew on an annual basis until terminated. The Company’s obligation for the payment of fees (the “Monthly Fees”) for the CUB Lease is $82,700 per month and ten advanced monthly payments of $169,753. Total future minimum lease payments under the CUB Lease over the initial ten-year term, including advanced payments, are approximately $11.6 million.

The CUB Landlord has the right to terminate the lease upon breach of a material provision of the CUB Lease, including the Company’s failure to pay financial obligations in a timely manner.

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

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