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Commitments and Contingencies
6 Months Ended
Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
(12)
Commitments and Contingencies

 

In the ordinary course of business, the Company may be subject to legal proceedings, claims and litigation as the Company operates in an industry susceptible to patent legal claims. The Company accounts for estimated losses with respect to legal proceedings and claims when such losses are probable and estimable. Legal costs associated with these matters are expensed when incurred. The Company is not currently a party to any material legal proceedings.

The Company’s commitments described in the Company’s consolidated financial statements as of and for the year ended December 31, 2022 and the notes thereto included in the 2022 Annual Report have had no material changes during the six months ended June 30, 2023, except for the Azzur lease as described below.

 

In November 2022, the Company entered into a new agreement (the Fifth SOW) with Azzur that extended the term of the leases for the period beginning April 2023 through December 2023 (the Fourth Term). The Fifth SOW contains two options to extend the lease, the first option goes through June 2024 and the second option goes through December 2024. During the quarter ended June 30, 2023, the Company determined that it was reasonably certain to exercise both the first and second option to extend the lease. As a result of the extension, there was an adjustment to the operating lease right-of-use asset and corresponding lease liability of $0.9 million. The total remaining liability associated with the Azzur lease is approximately $2.9 million as of June 30, 2023. For a full description of the Azzur lease, see Note 14, Leases in the audited financial statements included in the 2022 Annual Report.