Quarterly report pursuant to Section 13 or 15(d)

Operating Leases

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Operating Leases
6 Months Ended
Jun. 30, 2024
Operating Leases  
Operating Leases

6. Operating Leases

 

The Company has an operating lease for a commercial manufacturing facility and administrative offices located in Langhorne, Pennsylvania that runs through January 2031. There are two options that can extend the lease term for five years each. The exercise of the lease options to renew is solely at the Company’s discretion.

 

The Company also has a sublease for office and manufacturing space in Granbury, Texas that runs through February 2028.There is an option that can extend the lease term for an additional five years through February 2033. The exercise of the lease options to renew is solely at the Company’s discretion.

 

The following table presents information about the amount and timing of the liability arising from the Company’s operating lease as of June 30, 2024 ($ in thousands):

 

Maturity of Lease Liability  

Operating

Lease

Liabilities

 
2024 (Remainder of year)   $ 122  
2025     245  
2026     301  
2027     315  
2028     324  
Thereafter     790  
Total undiscounted operating lease payments     2,097  
Less: Imputed interest     (228 )
Present value of operating lease liabilities   $ 1,869  
Weighted average remaining lease term     6.9 years  
Weighted average discount rate     3.0 %

 

Total operating lease expense for the six months ended June 30, 2024 and 2023, was $143 thousand and $136 thousand, respectively, and is recorded in cost of goods sold and selling, general and administrative expenses in the accompanying condensed consolidated statements of operations.

 

Supplemental cash flows information related to leases was as follows:

 

    June 30,  
    2024  
Cash paid for amounts included in the measurement of lease liability ($ in thousands):        
Operating cash flows from operating lease   $ 122