On January 11, 2021, the Company entered into a lease agreement (the “Dallas Lease”) with Pegasus Park, LLC, a Delaware limited liability company (the “Dallas Landlord”), pursuant to which the Company agreed to lease approximately 15,000 square feet of office space at 3000 Pegasus Park Drive, Dallas, Texas 75247 (the “Office Space”).

The Dallas Lease commenced on May 27, 2021, and has a term of approximately ten years. The Company has an option to extend the term of the Dallas Lease for one additional period of five years.

The Dallas Landlord has the right to terminate the Dallas Lease, or the Company’s right to possess the Office Space without terminating the Dallas Lease, upon specified events of default, including the Company’s failure to pay rent in a timely manner and upon the occurrence of certain events of insolvency with respect to the Company.

On December 14, 2021, the Company amended the Dallas Lease (the “Dallas Lease Amendment”) with the Dallas Landlord, pursuant to which the Company agreed to lease approximately 18,000 square feet of office space adjacent to the Office Space at 3000 Pegasus Park Drive, Dallas, Texas 75247 (the “Expansion Premises”).

The Dallas Lease Amendment commenced on July 1, 2022, and has a term of ten years.

The Company is obligated to pay operating costs and utilities applicable to the Expansion Premises. Total future minimum lease payments under the Dallas Lease Amendment over the initial 10 year term are $6.0 million. The Company will be responsible for costs of constructing interior improvements within the Expansion Premises that exceed a $40.00 per rentable square foot construction allowance provided by the Dallas Landlord.

The Company has a right of first refusal with respect to certain additional office space on the 15th floor at 3000 Pegasus Park Drive, Dallas, Texas 75247 before the Dallas Landlord accepts any offer for such space.

On December 17, 2020, the Company entered into a lease agreement (the “Durham Lease”) with Patriot Park Partners II, LLC, a Delaware limited liability company (the “Durham Landlord”), pursuant to which the Company agreed to lease approximately 187,500 square feet of a manufacturing facility located at 5 National Way, Durham, North Carolina (the “Facility”). The Durham Lease commenced on April 1, 2021 and is expected to have a term of approximately fifteen years and six months. The Company has two options to extend the term of the Durham Lease, each for a period of an additional five years.

The Company was not required to provide a security deposit in connection with its entry into the Durham Lease. The Company will be responsible for constructing interior improvements within the Facility. The Company was required to place $2.6 million in an escrow account which was to be released when the improvements were substantially complete. In December 2023, the Company entered into an agreement with the landlord whereby the Company agreed to remove specified leasehold improvements which will be funded by the escrowed funds. The escrow funds are recorded as restricted cash on the consolidated balance sheets as of December 31, 2023 with $0.5 million recorded in current assets and $2.1 million in noncurrent assets. The Durham Landlord has the right to terminate the Durham Lease upon specified events of default, including the Company’s failure to pay rent in a timely manner and upon the occurrence of certain events of insolvency with respect to the Company.

The following table summarizes the lease costs recognized under ASC 842 and other information pertaining to the Company's operating leases for the year ended December 31, 2023 and 2022 (in thousands):


	For the Year Ended December 31,
	2023		2022
Operating lease cost	$	2,770	$	2,873
Variable lease cost		960		452
Total lease cost	$	3,730	$	3,325

Supplemental information related to the remaining lease term and discount rate are as follows:


	December 31, 2023			December 31, 2022
Weighted average remaining lease term (in years) – Finance leases		2.88			3.88
Weighted average remaining lease term (in years) – Operating leases		10.75			11.45

Weighted average discount rate – Finance leases		10.52	%		10.51	%
Weighted average discount rate – Operating leases		7.80	%		7.72	%

Supplemental cash flow information related to the Company's operating leases are as follows (in thousands):


	For the Year Ended December 31,
	2023		2022
Operating cash flows for operating leases	$	2,824	$	2,486

As of December 31, 2023, future minimum commitments under ASC 842 under the Company's operating and finance leases were as follows (in thousands):


Year Ending December 31,	Operating			Finance
2024	$	2,810		$	454
2025		2,910			454
2026		2,485			325
2027		2,577			73
2028		2,673			—
Thereafter		17,045			—
Total lease payments		30,500			1,306
Less: imputed interest		(10,255	)		(174	)
Total lease liabilities	$	20,245		$	1,132
Lease liabilities, current		1,292			354
Lease liabilities, non-current		18,953			778
Total lease liabilities	$	20,245		$	1,132