Quarterly report [Sections 13 or 15(d)]

Leases

v3.25.1
Leases
3 Months Ended
Mar. 31, 2025
Leases  
Leases

4. Leases

 

At the inception of an arrangement, the Company determines if an arrangement is, or contains, a lease based on facts and circumstances present in that arrangement. Lease classifications, recognition, and measurement are then determined at the lease commencement date.

 

The Company’s operating lease right-of-use (“ROU”) assets and operating lease liabilities include primarily leases for office and warehouse spaces used to conduct our business. Finance leases primarily consist of lab, processing and transport equipment used by our facilities’ operations.

 

The components of lease cost for the Company’s leases were as follows (in thousands):

 

Schedule of Components of Lease Cost

                 
    Three Months Ended  
    March 31,  
    2025     2024  
Operating Lease:                
Lease cost   $ 121     $ 143  
                 
Finance Leases:                
Amortization of ROU assets     63       65  
Interst on lease liablity     23       22  
Finance lease     86       87  
                 
Short-term lease rent expense     2          
                 
Total lease cost   $ 209     $ 230  

 

 

The weighted average remaining lease term and the weighted average discount rate for operating and finance leases as of March 31, 2025, were:

Schedule of Weighted Average Lease

 

    Operating Leases     Finance Leases  
Weighted average remaining lease terms (years)     4.5       3.7  
                 
Weighted average discount rate     7.7 %     9.4 %

 

The weighted average remaining lease term and the weighted average discount rate for operating and finance leases as of March 31, 2024 were:

 

    Operating Leases     Finance Leases  
Weighted average remaining lease terms (years)     5.4       4.3  
                 
Weighted average discount rate     7.6 %     8.8 %

 

The following table reconciles the undiscounted cash flows for the operating and finance leases as of March 31, 2025, to the operating and finance lease liabilities recorded on the balance sheet (in thousands):

 

Schedule of Operating and Finance Lease Liability Maturity

    Operating Leases     Finance Leases  
2025   $ 373     $ 287  
2026     479       231  
2027     447       197  
2028     343       174  
2029     334       112  
2030 and thereafter     73              
Total undiscounted lease payments     2,049       1,001  
Less: Imputed interest     (351 )     (163 )
Present value of lease payments   $ 1,698     $ 838  
                 
Current portion of operating lease obligations   $ 365     $  —  
Long-term operating lease obligations, less current portion   $ 1,333     $  
Current portion of finance lease obligations   $    —     $ 298  
Long-term finance lease obligations, less current portion   $    —     $ 540  

 

 

Supplemental cash flow and other information related to our leases were as follows (in thousands):

 

Schedule of Supplemental Cash Flow and Other Information Related to Leases

                 
    Three Months Ended  
    March 31,  
    2025     2024  
Cash paid for amounts included in the measurement of lease liabilities:                
Operating cash flow from operating leases   $ 113     $ 147  
Operating cash flow from finance leases   $ 23     $ 22  
Financing cash flow from finance leases   $ 71     $ 75  
                 
ROU assets obtained in exchange for lease obligations for:                
Finance liabilities   $ 132     $