Note 17 - Leases

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Lessee, Leases [Text Block]

Note 17 Leases

We have operating leases for office space, laboratory operations, research and development facilities, manufacturing locations, warehouses and certain equipment. We determine if a contract contains a lease at inception or modification of a contract. Our leases generally do not provide an implicit interest rate, and we therefore use our incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease within a particular currency environment. We used the incremental borrowing rates as of January 1, 2019 for operating leases that commenced prior to that date. Many of our leases contain rental escalation, renewal options and/or termination options that are factored into our determination of lease payments as appropriate. Variable lease payment amounts that cannot be determined at the commencement of the lease are not included in the right-to-use assets or liabilities.

We elected the use of permitted practical expedients of not recording leases on our Consolidated Balance Sheet when the leases have terms of 12 months or less, and we elected not to separate nonlease components from lease components and instead account for each separate lease component and the nonlease components associated with that lease component as a single lease component.

On January 2, 2023, ModeX entered into a 10-year office lease agreement commencing in October 2023. ModeX was previously located in Natick, Massachusetts and relocated to Weston, Massachusetts, upon lease commencement. The new location is approximately 33,056 square feet of office space. ModeX has two options to extend the lease term for an additional five years per extension, which would commence upon the expiration of the term in October 2033. Straight-line monthly expense for the lease is $243.5 thousand.

The following table presents the lease balances within the Consolidated Balance Sheet as of December 31, 2023 and 2022:

(in thousands)	Classification on the Balance Sheet	December 31, 2023			December 31, 2022
Assets
Operating lease assets	Operating lease right-of-use assets	$	68,088		$	38,725
Finance lease assets	Property, plant and equipment, net		10,101			9,898
Liabilities
Current
Operating lease liabilities	Current maturities of operating leases		12,996			11,628
Accrued expenses	Current maturities of finance leases		2,827			2,809
Long-term
Operating lease liabilities	Operating lease liabilities		54,140			27,963
Other long-term liabilities	Finance lease liabilities	$	7,274		$	7,089
Weighted average remaining lease term
Operating leases (years)			7.1			6.0
Finance leases (years)			6.2			6.5
Weighted average discount rate
Operating leases			5.4	%		4.4	%
Finance leases			3.8	%		3.8	%

The following table reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total operating lease liabilities recognized on our Consolidated Balance Sheet as of December 31, 2023:

(in thousands)	Operating		Finance
2024	$	13,433	$	3,135
2025		12,034		2,450
2026		10,540		1,781
2027		10,284		957
2028		9,959		218
Thereafter		25,752		1,944
Total undiscounted future minimum lease payments		82,002		10,485
Less: Difference between lease payments and discounted lease liabilities		14,866		384
Total lease liabilities	$	67,136	$	10,101

Expense under operating leases and finance leases was $16.6 million and $2.9 million, respectively, for the year ended December 31, 2023, which includes $1.4 million of variable lease costs. Expense under operating leases and finance leases was $16.6 million and $2.7 million, respectively, for the year ended December 31, 2022, which includes $2.6 million of variable lease costs. Expense under operating leases and finance leases was $18.0 million and $2.3 million, respectively, for the year ended December 31, 2021, and includes $2.5 million of variable lease costs. Operating lease costs and finance lease costs are included within Operating loss in the Consolidated Statement of Operations. Short-term lease costs were not material.

Supplemental cash flow information is as follows:

(in thousands)	For the years ended December 31,
	2023		2022
Operating cash out flows from operating leases	$	16,112	$	16,271
Operating cash out flows from finance leases		416		162
Financing cash out flows from finance leases		2,214		1,332
Total	$	18,742	$	17,765