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Leases
12 Months Ended
Dec. 31, 2025
Leases  
Leases

9. Leases

 

On March 1, 2021, the Company entered into an office lease agreement (the “Globe Lease”) with Globe Building Company, under which the Company leases executive office space and manufacturing facilities of approximately 43,100 square feet of rentable space located at 710 N. Tucker Boulevard, St. Louis, Missouri (the “Premises”) that serves as the Company’s new principal executive and administrative offices and manufacturing facility. Lease payments commenced on January 1, 2022, and the lease has a term of ten years, with two renewal options of five years each. The minimum annual rent under the terms of the Globe Lease ranges from approximately $0.8 million in 2022 to $1.0 million in 2031.

 

 

On July 31, 2024, the Company entered into a lease agreement (the “Talulla Lease”) with Talulla Group LLC, under which the Company leases office space and manufacturing facilities of approximately 11,300 square feet of rentable space located at 12560 Fletcher Lane, Rogers, Minnesota that will continues to serve as the APT’s office and manufacturing facility. Lease payments commenced on August 1, 2024, and the lease has a term of four years, with two renewal options of four years each. The minimum annual rent under the terms of the Talulla Lease is approximately $0.2 million per year. In accordance with ASC 842, the Company recorded a ROU asset and lease liability in third quarter of 2024. The initial recognition of the ROU asset and lease liability was $1.0 million.

 

The Company also has leased office space in Beijing, China under a lease agreement through November 29, 2026.

 

As of December 31, 2025, the weighted average discount rate for operating leases was 9% and the weighted average remaining lease term for operating lease term is 6.1 years.

 

The following table represents lease costs and other lease information (in thousands):

 

         
   Year Ended December 31, 
   2025   2024 
Operating lease cost  $1,079   $980 
Short-term lease cost   5    10 
Total net lease cost  $1,084   $990 
           
Cash paid within operating cash flows  $1,196   $1,096 

 

Variable lease costs consist primarily of taxes, insurance, and common area or other maintenance costs for our leased facilities and equipment which are paid based on actual costs incurred.

 

Future minimum payments for operating leases with initial or remaining terms of one year or more as of December 31, 2025, were as follows (in thousands):

 

  

December 31, 2025

 
2026  $1,097 
2027   1,122 
2028   1,147 
2029   1,173 
2030   1,198 
2031 and thereafter   1,334 
Total lease payments   7,071 
Less: Interest   (1,635)
Present value of lease liabilities  $5,436