v3.25.2
Note 7 - Leases
6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
Lessee, Operating and Finance Leases [Text Block]

Note 7. Leases

 

We lease laboratory and office space and certain laboratory equipment under non-cancellable operating leases. The carrying value of our right-of-use lease assets is substantially concentrated in our real estate leases, while the volume of lease agreements is primarily concentrated in equipment leases. We expect that, in the normal course of business, the existing leases will be renewed or replaced by similar leases.

 

We have leases for three real estate properties: (i) a laboratory and manufacturing facility lease that commenced in September 2021 with a ten-year term and an option to extend for two five-year periods, (ii) a laboratory and manufacturing facility lease that commenced in February 2022 with a seven-year term and an option to extend for two five-year periods, and (iii) our corporate office lease that commenced a renewed term in April 2020 for seven years with an option to extend for five years. We did not recognize the payments to be made in the option periods as part of the right-of-use asset or lease liability because the exercise of the option is not reasonably certain.

 

As of June 30, 2025 and December 31, 2024, our operating lease obligations had a weighted-average discount rate of 9.6% and 9.6%, respectively, and a weighted-average remaining term of 5.0 years and 5.5 years, respectively.

 

Maturity Analysis of Lease Obligations

 

The maturity analysis of our operating lease obligations as of June 30, 2025 was as follows:

 

(in thousands)

 

Operating Leases

 

2025 (remainder)

  $ 795  

2026

    1,236  

2027

    1,133  

2028

    1,093  

2029

    649  

2030

    623  

Thereafter

    422  

Total minimum lease payments

    5,951  

Less amount representing interest/discounting

    (1,232 )

Present value of minimum lease payments

    4,719  

Less lease obligations, current portion

    (1,013 )

Lease obligations, net of current portion

  $ 3,706  

 

Components of Lease Cost

 

The components of lease costs for the three and six months ended June 30, 2025 and 2024 were as follows:

 

   

Three Months Ended June 30,

   

Six Months Ended June 30,

 

(in thousands)

 

2025

   

2024

   

2025

   

2024

 

Finance lease amortization

  $     $ 18     $     $ 45  

Operating lease costs

    255       255       508       509  

Short-term lease costs

    2       2       2       2  

Variable lease costs

    80       76       161       129  

Total lease costs

  $ 337     $ 351     $ 671     $ 685  

 

Supplemental Cash Flow Information

 

  

Six Months Ended June 30,

 

(in thousands)

 

2025

  

2024

 

Operating cash flows from operating leases

 $(671) $(640)

Financing cash flows from finance leases

 $  $(27)