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Leases | 3 Months Ended
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Mar. 31, 2023
Leases [Abstract] |
Leases | 8. Leases Lease Agreements ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company’s lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date to determine the appropriate discount rate by multiple asset classes. Variable lease payments that are not based on an index or that result from changes to an index subsequent to the initial measurement of the corresponding lease liability are not included in the measurement of lease ROU assets or liabilities and instead are recognized in earnings in the period in which the obligation for those payments is incurred. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise any such options. Lease expense is recognized on a straight‐line basis over the expected lease term. Rent expense was $984 and $983 for the three months ended March 31, 2023 and 2022, respectively. On March 13, 2019, Legacy Celularity entered into a lease agreement for a 147,215 square foot facility consisting of office, manufacturing and laboratory space in Florham Park, New Jersey, which expires in 2036. The Company has the option to renew the term of the lease for two additional five-year terms so long as the lease is then in full force and effect. The lease term commenced on March 1, 2020 subject to an abatement of the fixed rent for the first 13 months following the lease commencement date. The initial monthly base rent is approximately $230 and will increase annually. The Company is obligated to pay real estate taxes and costs related to the premises, including costs of operations, maintenance, repair, replacement and management of the new leased premises. In connection with entering into this lease agreement, Legacy Celularity issued a letter of credit of $14,722 which is classified as restricted cash (non-current) on the condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022. The lease agreement allows for a landlord provided tenant improvement allowance of $14,722 to be applied to the costs of the construction of the leasehold improvements. The components of the Company’s lease costs are classified on its condensed consolidated statements of operations as follows:
|  | Three Months Ended March 31, |  |  | Three Months Ended March 31, |
|  | 2023 |  |  | 2022 |
Operating lease cost |  | $ | 760 |  |  | $ | 760 |
Variable lease cost |  |  | 304 |  |  |  | 325 |
Total operating lease cost |  | $ | 1,064 |  |  | $ | 1,085 |
Short term lease cost |  | $ | - |  |  | $ | 46 |
The table below shows the cash and non-cash activity related to the Company’s lease liabilities during the period:
|  | Three Months Ended March 31, |  |  | Three Months Ended March 31, |
|  | 2023 |  |  | 2022 |
Cash paid related to lease liabilities: |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 715 |  |  | $ | 708 |
Non-cash lease liability activity: |  |  |  |  |  |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |
Operating leases |  | $ | - |  |  | $ | - |
As of March 31, 2023, the maturities of the Company’s operating lease liabilities were as follows:
2023 (remaining nine months) |  | $ | 2,181 |
2024 |  |  | 2,969 |
2025 |  |  | 3,042 |
2026 |  |  | 3,116 |
2027 |  |  | 3,190 |
Thereafter |  |  | 70,341 |
Total lease payments |  |  | 84,839 |
Less imputed interest |  |  | (56,790 | )
Total |  | $ | 28,049 |
As of March 31, 2023, the weighted average remaining lease term of the Company’s operating lease was 23.0 years, and the weighted average discount rate used to determine the lease liability for the operating lease was 11.12%.

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- References No definition available. + Details
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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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
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