Lease Obligations

3 Months Ended

Mar. 31, 2024

The Company leases certain assets under operating and finance leases, which consist of real estate leases, laboratory equipment leases and office equipment leases as of March 31, 2024. Renewal options for the Company’s leases are three years in length and begin from 2025 through 2030.

Lease expense under operating and finance leases was as follows (in thousands):


	Three Months Ended March 31,
	2024		2023
Operating lease expense	$	590	$	433
Finance lease expense:
Amortization of right-of-use assets	$	407	$	256
Interest on lease liabilities	77		38
Total finance lease expense	$	484	$	294

Other supplemental information related to leases was as follows:


	March 31, 2024		December 31, 2023
Weighted average remaining lease term:
Operating leases	9.4 years		9.7 years
Finance leases	2.8 years		3.0 years
Weighted average discount rate:
Operating leases	10.89	%	10.88	%
Finance leases	7.59	%	7.46	%

The following table summarizes the presentation in the Condensed Consolidated Balance Sheets of the Company’s operating leases (in thousands):


	Balance Sheet Location	March 31, 2024		December 31, 2023
Operating lease assets:
Operating lease assets, net	Other Assets	$	8,864	$	8,682
Operating lease liabilities:
Current operating lease liabilities	Operating lease liabilities – current liabilities	$	1,098	$	1,058
Non-current operating lease liabilities	Operating lease liabilities – long-term liabilities	8,596		8,390
Total operating lease liabilities		$	9,694	$	9,448

The following table summarizes the presentation in the Condensed Consolidated Balance Sheets of the Company’s finance leases (in thousands):


	Balance Sheet Location	March 31, 2024		December 31, 2023
Finance lease assets:
Finance lease assets, net	Other Assets	$	4,018	$	4,322
Finance lease liabilities:
Current finance lease liabilities	Finance lease liabilities – current liabilities	$	1,642	$	1,590
Non-current finance lease liabilities	Finance lease liabilities – long-term liabilities	2,506		2,845
Total finance lease liabilities		$	4,148	$	4,435

Operating lease assets are recorded net of accumulated amortization of $5,120 and $4,794 as of March 31, 2024 and December 31, 2023, respectively. Finance lease assets are recorded net of accumulated amortization of $2,700 and $2,293 as of March 31, 2024 and December 31, 2023, respectively.

Maturities of lease liabilities as of March 31, 2024 are as follows (in thousands):


	Operating Leases		Finance Leases
2024 (remaining)	$	1,589	$	1,418
2025	1,850		1,766
2026	1,661		933
2027	1,584		459
2028	1,416		31
Thereafter	7,997		—
Total lease payments	16,097		4,607
Less imputed interest	(6,403)		(459)
Total	$	9,694	$	4,148

Supplemental cash flow information related to leases was as follows (in thousands):


	Three Months Ended March 31,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for finance leases	$	77	$	282
Operating cash flows for operating leases	$	525	$	423
Financing cash flows for finance leases	$	390	$	—

Operating lease assets obtained in exchange for operating lease liabilities:	$	156	$	95
Finance lease assets obtained in exchange for finance lease liabilities:	$	103	$	610
Non-cash increase to operating lease assets due to remeasurement of operating lease liabilities:	$	365	$	—