Leases

12 Months Ended

Dec. 31, 2024

10. LEASES

In November 2020, Legacy Tectonic executed a facilities lease agreement to occupy 18,768 square feet of office and laboratory space, that was subsequently amended on April 21, 2022. The lease requires the Company to pay fixed base rent, which is included in the measurement of the lease, as well as its proportionate share of the facilities operating expenses which are treated as variable lease costs based on the Company’s election to combine lease and associated

non-lease

components and are excluded from the measurement of the lease. The lease expires on January 31, 2026, and contains a

five

-year renewal option exercisable by the Company which is not included in the measurement of the lease.

Legacy Tectonic has also entered into various financing leases for laboratory equipment used in research and development activities.

The components of lease expense and other information are as follows (dollars in thousands):


	Year Ended December 31,
	2024		2023
Finance lease amortization of right-of-use assets	$	448	$	488
Interest of finance lease liabilities		107		151

Finance lease expense		555		639
Operating lease expense		1,608		1,404
Short-term lease expense		545		749
Variable lease expense		911		786

Total lease expense	$	3,619	$	3,578


	Year Ended December 31,
	2024			2023
Weighted-average remaining lease terms (in years)
Operating leases		1.06			2.09
Finance leases		2.26			3.23
Weighted-average discount rate
Operating leases		8.49	%		8.25	%
Finance leases		9.76	%		9.62	%

Future commitments due under these lease agreements as of December 31, 2024 are as follows (in thousands):


As of December 31,	Operating Leases			Finance Leases			Total
2025	$	2,396		$	552		$	2,948
2026		132			363			495
2027		—			44			44

Total undiscounted cash flows		2,528			959			3,487
Less: imputed interest		(101	)		(83	)		(184	)

Total lease liabilities	$	2,427		$	876		$	3,303
Less: current portion		2,295			489			2,784

Lease liabilities	$	132		$	387		$	519