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. The Company modified the lease agreement through July 2035.

On April 17, 2026, in conjunction with the Celularity License Agreement, the Company entered into a five-year sublease with Celularity, Inc. for approximately 7,843 square feet of office space in Florham Park, New Jersey. The sublease incorporates the applicable terms and conditions of the underlying master lease, as amended on September 24, 2023.

The following table presents information about the amount and timing of the liability arising from the Company’s operating lease as of June 30, 2026 ($ in thousands):

Schedule of Future Minimum Operating Lease Payments

Total operating lease expense for the six months ended June 30, 2026, and 2025, was $86 thousand and $71 thousand, respectively, and is recorded in cost of goods sold and selling, general, and administrative expenses in the accompanying condensed consolidated statements of operations. The weighted average discount rate was 5.0% and 2.6% and the weighted average remaining lease term was 5.7 years and 6.2 years at June 30, 2026 and 2025, respectively.

Supplemental cash flows information related to leases was as follows:

Schedule of Supplemental Cash Flows Information Related to Operating Leases