XML 25 R13.htm IDEA: XBRL DOCUMENT

Note 7 - Leases

9 Months Ended

Sep. 30, 2024

Lessee, Operating and Finance Leases [Text Block]

Note 7. Leases

We lease laboratory and office space and certain laboratory equipment under non-cancellable operating and finance 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.

Operating Leases

Operating leases primarily consist of real estate leases for office and laboratory space. We have three real estate leases: (i) a laboratory and manufacturing facility which 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 which commenced in February 2022 with a seven-year term and an option to extend for two five-year periods, and (iii) our corporate office which commenced a renewed term in September 2022 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 September 30, 2024 and December 31, 2023, our operating lease obligations had a weighted-average discount rate of 9.6% and 9.6%, respectively, and a weighted-average remaining term of 5.7 years and 6.4 years, respectively.

Finance Leases

We did not have any finance lease obligations as of September 30, 2024. Assets recorded under finance lease obligations and included within property and equipment as of December 31, 2023 were as follows:

	*December 31,*
(in thousands)	*2023*
Lab equipment	$	636
Less accumulated depreciation		(449	)
Net	$	187

As of December 31, 2023, our finance lease obligations had a weighted-average interest rate of 11.0% and a weighted-average remaining term of 0.4 years.

Maturity Analysis of Lease Obligations

The maturity analysis of our operating lease obligations as of September 30, 2024 was as follows:

(in thousands)	*Operating Leases*
2024 (remainder)	$	48
2025		1,458
2026		1,236
2027		1,132
2028		1,093
2029		649
Thereafter		1,045
Total minimum lease payments		6,661
Less amount representing interest/discounting		(1,594	)
Present value of minimum lease payments		5,067
Less lease obligations, current portion		(732	)
Lease obligations, net of current portion	$	4,335

Components of Lease Cost

The components of finance and operating lease costs for the three and nine months ended September 30, 2024 and 2023 were as follows:

	*Three Months Ended September 30,*				*Nine Months Ended September 30,*
(in thousands)	*2024*		*2023*		*2024*		*2023*
Finance lease costs:
Amortization	$	12	$	16	$	57	$	57
Interest on lease liabilities		—		1		—		10
Operating lease costs		255		254		764		758
Short-term lease costs		—		1		2		3
Variable lease costs		88		70		217		192
Total lease costs	$	355	$	342	$	1,040	$	1,020

Supplemental Cash Flow Information

	*Nine Months Ended September 30,*
(in thousands)	*2024*			*2023*
Operating cash flows from operating leases	$	(983	)	$	(953	)
Operating cash flows from finance leases	$	—		$	(10	)
Financing cash flows from finance leases	$	(27	)	$	(63	)