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Commitments and Contingencies
6 Months Ended
Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
(11)
Commitments and Contingencies

 

In the ordinary course of business, the Company may be subject to legal proceedings, claims and litigation as the Company operates in an industry susceptible to patent legal claims. The Company accounts for estimated losses with respect to legal proceedings and claims when such losses are probable and estimable. Legal costs associated with these matters are expensed when incurred. The Company is not currently a party to any material legal proceedings.

The Company’s commitments are described in the Company’s consolidated financial statements as of and for the year ended December 31, 2021 and the notes thereto included in the Annual Report on Form 10-K filed with the SEC on March 17, 2022. On

January 21, 2022, the Company entered into two Statements of Work with Azzur Group, LLC (Azzur). Pursuant to the first of the SOWs (the Third SOW), the Company has agreed to pay Azzur $650,000 to renovate and upgrade the cleanroom space at Azzur for the Company’s expanded use. The second of the SOWs (the Fourth SOW) replaces the Second SOW that the Company entered into with Azzur on April 29, 2021. The Fourth SOW extends the term of the lease, for the period beginning January 2022 through March 2023 (the Third Term). The Fourth SOW contains an option to extend the lease. As of June 30, 2022, the Company determined that it was more likely than not to exercise the option to extend the lease. The Third and Fourth SOWs resulted in an adjustment to the operating lease right-of-use asset and corresponding operating lease liabilities of $1.8 million. The total remaining liability associated with the Azzur lease is approximately $2.9 million as of June 30, 2022. For a full description of the Azzur embedded lease, refer to Note 13, Leases in the 2021 Annual Report.