v3.22.2.2
Note 8 - Leases
9 Months Ended
Sep. 30, 2022
Notes to Financial Statements  
Lessee, Operating Leases [Text Block]

8. Leases

 

Office Lease

 

On March 26, 2021, the Company entered into a Sublease Agreement to sublet space for its new corporate headquarters. The Sublease Agreement commencement date was April 1, 2021. The Sublease Agreement is for a period of two years and three months with monthly rental payments of $17,000, including one month of abated rent. On the lease commencement date, the Company recognized an operating lease right-of-use asset in the amount of $0.4 million.

 

Contract Manufacturing Leases

 

The Company has entered into commercial supply manufacturing services agreements related to Zalviso and DSUVIA containing fixed fees which it has determined are in-substance lease payments. For additional information on these agreements, refer to Note 9 “Leases” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

 

The components of lease expense are presented in the following table (in thousands):

 

   

Three Months Ended
September 30,

   

Nine Months Ended
September 30,

 
   

2022

   

2021

   

2022

   

2021

 

Operating lease costs

  $ 344     $ 343     $ 1,030     $ 1,123  

Gain on derecognition of operating lease

                      (522

)

Sublease income

                      (199

)

Loss on termination of sublease

                      331  

Net lease costs

  $ 344     $ 343     $ 1,030     $ 733  

 

The weighted average remaining lease term and discount rate related to the operating leases are presented in the following table:

 

   

September 30, 2022

   

September 30, 2021

 

Weighted-average remaining lease term – operating leases (in years)

    4.36       5.21  

Weighted-average remaining discount rate – operating leases

    12.8

%

    12.8

%

 

Maturities of lease liabilities as of September 30, 2022 are presented in the following table (in thousands):

 

Year:

       

2022 (remaining three months)

  $ 835  

2023

    1,344  

2024

    1,090  

2025

    1,040  

2026

    1,040  

Thereafter

    415  

Total future minimum lease payments

    5,764  

Less imputed interest

    (1,176 )

Total

  $ 4,588  

 

Reported as:

 

Operating lease liabilities

  $ 4,588  

Operating lease liabilities, current portion

    (1,360 )

Operating lease liabilities, net of current portion

  $ 3,228