Annual report [Section 13 and 15(d), not S-K Item 405]

Operating Leases

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Operating Leases
12 Months Ended
Dec. 31, 2024
Operating Leases  
Operating Leases

7. 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 December 31, 2024 ($ in thousands):

  

Maturity of Lease Liability  

Operating

Lease Liability

 
2025   $ 245  
2026     301  
2027     315  
2028     324  
2029     332  
Thereafter     459  
Total undiscounted operating lease payments   $ 1,976  
Less: Imputed interest     (201 )
Present value of operating lease liability   $ 1,775  
Weighted average remaining lease term     6.4 years  
Weighted average discount rate     3.0 %

 

 

Total operating lease expense for the years ended December 31, 2024, and 2023, was $287 thousand and $303 thousand, respectively, and is recorded in cost of goods sold and selling, general, and administrative expenses in the accompanying consolidated statements of operations.

 

Supplemental cash flows information related to leases was as follows:

  

    December 31,     December 31,  
    2024     2023  
Cash paid for amounts included in the measurement of lease liability ($ in thousands):                
Operating cash flows from operating lease   $ 245     $ 238