Leases

9 Months Ended

Sep. 30, 2024

15.

LEASES

On July 1, 2014, the Company entered into a contract to lease office space in the Las Colinas Business Center in Irving, TX. Subsequent to execution of the contract, the Company revised the lease to include additional space and extend the lease term through June 30, 2023. On November 1, 2022, the Company executed an extension of leased office space to extend through November 30, 2028. This extension included an additional 3,700 square feet of space that became available for use in December 2023 and has been included in monthly rent payments accordingly.

On September 11, 2024, the Company entered into a 60-month operating lease agreement for approximately 19,076 square feet of office space in Birmingham, Alabama that will be used by Asteria Health to expand its compounded bioidentical hormones manufacturing facility capabilities. The Company recorded an initial operating lease right-of-use asset of $1.4 million and corresponding current and non current operating lease liability of $0.04 million and $1.3 million, respectively, at the lease commencement date and are included in the September 30, 2024 condensed consolidated balance sheet.

The Company recognizes operating lease costs on a straight-line basis over the lease term within selling, general and administrative expense in the unaudited condensed consolidated statements of operations and comprehensive income (loss). The following table contains a summary of the operating lease costs recognized under ASC 842 and supplemental cash flow information for leases:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Fixed lease expense	$	150	$	112	$	447	$	311
Total lease cost	$	150	$	112	$	447	$	311

Other information:
Cash paid for amounts included in the measurement of lease liabilities	$	143	$	103	$	400	$	214
Right-of-use assets obtained in exchange for new operating lease liabilities	$	1,374	$	—	$	1,779	$	—

The following table summarizes the balance sheet classification of the Company’s operating leases, amounts of ROU assets and lease liabilities, the weighted average remaining lease term, and the weighted average discount rate for the Company’s operating leases:


	September 30,			December 31,
(in thousands)	2024			2023
Lease assets
Operating lease right-of-use assets	$	3,376		$	1,877
Total lease assets	$	3,376		$	1,877

Lease liabilities
Current:
Operating lease liabilities	$	482		$	311
Non-current:
Operating lease liabilities		3,026			1,680
Total lease liabilities	$	3,508		$	1,991

Weighted-average remaining lease term — operating leases (years)		6.47			4.92
Weighted-average discount rate — operating leases		7.22	%		8.31	%

The following table summarizes the payments by date for the Company’s operating lease, which is then reconciled to the total lease obligation:


As of September 30,	(in thousands)
2024 (remaining three months)		157
2025		748
2026		774
2027		801
2028		701
Thereafter		1,206
Total lease payments		4,387
Less: Interest		(879	)
Present value of lease liabilities	$	3,508