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LEASES | 6 Months Ended
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Jun. 30, 2025
Leases [Abstract] |
LEASES | LEASES The Company leases all of its facilities, including its EXPAREL and iovera° handpiece manufacturing facility at its Science Center Campus in San Diego, California. In 2025, the Company moved its principal executive offices to Brisbane, California. The Company also has two embedded leases with Thermo Fisher Scientific Pharma Services in Swindon, U.K. for the production of EXPAREL and ZILRETTA. A portion of the associated monthly base fees have been allocated to the lease components based on a relative fair value basis. As part of the GQ Bio Acquisition in February 2025, the Company’s European offices were assumed and include a research and development lab and offices in Luckenwalde, Germany and administrative offices in Hamburg, Germany and each of Eupen and Liège, Belgium. The Company had been recognizing sublease income for laboratory space leased in Woburn, Massachusetts from leases that were assumed as part of the Flexion Acquisition. In February 2024, the lease and sublease term concluded for the laboratory space in Woburn, Massachusetts. In April 2025, the lease and sublease term concluded for the office space in Burlington, Massachusetts. The operating lease costs for the facilities include lease and non-lease components, such as common area maintenance and other common operating expenses, along with executory costs such as insurance and real estate taxes. Total operating lease expense, net is as follows (in thousands):
|  | Three Months Ended |  | Six Months Ended
|  | June 30, |  | June 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Fixed lease costs |  | $ | 3,232 |  |  | $ | 3,460 |  |  | $ | 6,534 |  |  | $ | 6,957 |
Variable lease costs |  | 576 |  |  | 289 |  |  | 1,115 |  |  | 783 |
Sublease income |  | (19) |  |  | (61) |  |  | (76) |  |  | (192) |
Total |  | $ | 3,789 |  |  | $ | 3,688 |  |  | $ | 7,573 |  |  | $ | 7,548 |
Supplemental cash flow information related to operating leases is as follows (in thousands):
|  | Six Months Ended
|  | June 30,
|  | 2025 |  | 2024
Cash paid for operating lease liabilities, net of lease incentives |  | $ | 6,458 |  |  | $ | 6,429 |
Right-of-use assets recorded in exchange for lease obligations |  | $ | 1,875 |  |  | $ | — |
The Company has elected to net the amortization of the right-of-use asset and the reduction of the lease liability principal in other liabilities in the condensed consolidated statements of cash flows. The Company has measured its operating lease liabilities at an estimated discount rate at which it could borrow on a collateralized basis over the remaining term for each operating lease. The weighted average remaining lease terms and the weighted average discount rates are summarized as follows:
|  | June 30,
|  | 2025 |  | 2024
Weighted average remaining lease term |  | 4.79 years |  | 5.58 years
Weighted average discount rate |  | 6.91 | % |  | 7.00 | %
Maturities of the Company’s operating lease liabilities are as follows (in thousands):
Year |  | Aggregate Minimum Payments Due
2025 (remaining six months) |  | $ | 6,388 |
2026 |  | 12,789 |
2027 |  | 12,336 |
2028 |  | 11,188 |
2029 |  | 11,076 |
Thereafter |  | 6,384 |
Total future lease payments |  | 60,161 |
Less: imputed interest |  | (9,250) |
Total operating lease liabilities |  | $ | 50,911 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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