Operating Leases

12 Months Ended

Dec. 31, 2024

Operating Leases

Operating Leases

Note 11 - Operating Leases

The Company leases distribution and research and development facilities as well as sub-leases office and manufacturing space from third parties and related parties (refer to Note 17-Related Party Transactions) under its operating leases. The leases have expirations ranging from March 2024 to June 2026, some of which include rent escalations or an option to extend the lease for up to three years per renewal. The exercise of lease renewal options is at the sole discretion of the Company. Where leases contain an option to renew, any period beyond the option date is only included as part of the lease term if the Company is reasonably certain to exercise the option.

As of December 31, 2024 and December 31, 2023, the Company does not have any finance or short-term leases and has not entered into leases which have not yet commenced that would entitle the Company to significant rights or create additional obligations as of December 31, 2024 and December 31, 2023.

The following table summarizes quantitative information of the Company’s operating leases for the periods from January 1, 2024 to July 30, 2024 (Predecessor), from July 31, 2024 to December 31, 2024 (Successor), and the year ended December 31, 2023 (Predecessor):

	Years Ended December 31,
	2024						2023
	Successor			Predecessor			Predecessor
In thousands, unaudited	July 31 to December 31,			January 1 to July 30			January 1 to December 31,
Operating cash flows paid for operating leases	$	63		$	108		$	178
Weighted average remaining lease term (years)		1.3			1.7			1.7
Weighted average discount rate		8	%		8	%		8	%

Operating lease cost was $0.1 million, $78.0 thousand, and $0.2 million for the periods from January 1, 2024 to July 30, 2024 (Predecessor), from July 31, 2024 to December 31, 2024 (Successor), and the year ended December 31, 2023 (Predecessor), respectively. There has been no variable lease cost for the periods from January 1, 2024 to July 30, 2024 (Predecessor), from July 31, 2024 to December 31, 2024 (Successor) and the year ended December 31, 2023 (Predecessor).

The following table presents the future minimum payments under the non-cancellable operating leases as of December 31, 2024 (in thousands):

Year ending December 31,
2025	$	154
2026		48
Total undiscounted future cash flows		202
Less: imputed interest		(13)
Total operating lease liability	$	189