Quarterly report pursuant to Section 13 or 15(d)

RIGHT-OF-USE ASSETS, LEASE OBLIGATIONS, AND OTHER LEASES

v3.21.2
RIGHT-OF-USE ASSETS, LEASE OBLIGATIONS, AND OTHER LEASES
9 Months Ended
Sep. 30, 2021
RIGHT-OF-USE ASSETS, LEASE OBLIGATIONS, AND OTHER LEASES  
RIGHT-OF-USE ASSETS, LEASE OBLIGATIONS, AND OTHER LEASES

NOTE 4. - RIGHT-OF-USE ASSETS, LEASE OBLIGATIONS, AND OTHER LEASES

The Company leases a manufacturing facility and warehouse in North Carolina, and a corporate headquarters in Buffalo, New York.

The following table summarizes the Company’s discount rate and remaining lease terms:

Weighted average remaining lease term in years

6.3

Weighted average discount rate

 

3.7

%

Future minimum lease payments as of September 30, 2021 are as follows:

2021

$

33

2022

 

76

2023

78

2024

 

80

2025

82

Thereafter

192

Total lease payments

 

541

Less: imputed interest

 

(60)

Total

$

481

On July 28, 2021, the Company signed a lease agreement for a new research and development (“R&D”) laboratory in Rockville, MD. The new laboratory space has over four thousand square feet and will support the Company’s continued growth and R&D partnerships. The lease has an initial monthly base rent of $12 (escalating 2.5% annually after the first year), a term of 51 months, and an expected commencement date of early fourth quarter of this year. The lease also calls for abatement of 100% of the base rent for the first five months following the lease commencement date. The Company will recognize the respective right-of-use asset and lease liability for the lease upon lease commencement, which is anticipated during the fourth quarter of 2021.

On October 18, 2021, the Company signed a lease extension for its manufacturing facility and warehouse in North Carolina. The lease has a commencement date upon expiration of the current lease term, which is November 1, 2021. The lease has a monthly base rent of $17 and an initial term of twenty-four months—with one twenty-four month renewal option at the Company’s discretion. The Company will recognize the respective right-of-use asset and lease liability during the fourth quarter of 2021.