Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

Commitments and Contingencies
9 Months Ended
Sep. 30, 2023
Commitments and Contingencies [Abstract]  
Commitments and Contingencies

Note 14 – Commitments and Contingencies


Operating Leases


The Company leases laboratory spaces, warehouse and office facilities with lease terms ranging from three to five years. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain operating leases also include renewal options at the election of the Company to renew or extend the lease. The Company evaluates renewal options at lease inception and on an ongoing basis and includes renewal options that it is reasonably certain to exercise in its expected lease terms when classifying leases and measuring lease liabilities.


As of September 30, 2023, the Company had operating lease liabilities of approximately $0.7 million and right-of- use assets of approximately $0.7 million, which are included in the condensed consolidated balance sheet.


The components of operating lease expense were as follows:


    Three Months Ended
September 30,
    Nine months Ended
September 30,
    2023     2022     2023     2022  
Operating leases:                        
Operating lease cost   $ 108     $ 190     $ 439     $ 570  
Variable lease cost     25       17       74       33  
Operating lease expense   $ 133     $ 207     $ 513     $ 603  


The following information represents supplemental disclosure for the condensed consolidated statement of cash flows related to operating leases (in thousands):


    Nine months Ended
September 30,
    2023     2022  
Operating cash flows - operating leases   $ 513     $ 570  
Right-of-use assets obtained in exchange for operating lease liabilities   $
    $ 2,336  


The present value assumptions used in calculating the present value of the lease payments were as follows:


    September 30,  
    2023     2022  
Weighted-average remaining lease term (years)     1.7       3.5  
Weighted-average discount rate     12.0 %     12.0 %


As of September 30, 2023, future minimum payments are as follows (in thousands):


Three months ended December 31, 2023   $ 133  
Year ended December 31, 2024       417  
Year ended December 31, 2025     194  
Year ended December 31, 2026       100  
Year ended December 31, 2027     9  
Total     853  
Less present value discount     (113 )
Operating lease liabilities     $ 740  




From time to time, the Company is also involved in various other claims and legal actions that arise in the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, the Company does not believe that the ultimate resolution of these actions will have a material adverse effect on its financial position, results of operations, liquidity or capital resources.


Future litigation may be necessary to defend ourselves and our partners by determining the scope, enforceability and validity of third party proprietary rights or to establish the Company’s proprietary rights. The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors.