Leases

3 Months Ended

Mar. 31, 2024

Leases

Leases

12. Leases

Office Lease

In January 2019, Legacy Orchestra entered into an additional addendum to the lease agreement for office space in New Hope, PA originally entered into in December 2009 (as amended, the “New Hope Lease”). The New Hope Lease covers 8,052 square feet and will expire in September 2024. Monthly fees will be between $9,000 and $19,000 for the period from commencement through expiration.

In November 2019, Legacy Orchestra entered into a new lease agreement for approximately 5,200 square feet of office space in New York, NY. In November 2022, the Company entered into an amendment for this lease which increased the office space square footage to approximately 7,800 and amended the expiration to April 2028. Monthly fees will be between $28,000 and $40,000 for the period from commencement through expiration.  

In January 2020, Legacy Orchestra entered into an agreement for the use of portions of the office space of Motus GI, a related party, in Fort Lauderdale, Florida. The agreement will expire in September 2024. The monthly fee commenced on the month following the date of agreement. Monthly fees will be between $12,000 and $17,000 for the period from commencement through expiration.

In May 2022, Legacy Orchestra amended the agreement with Motus GI for a larger portion of the office space and extended the expiration date to November 2024. Monthly fees will be between $7,000 and $23,000 for the period from commencement of the amendment to expiration. The amount paid is estimated to be proportionate to the percentage of space used by the Company applied to the monthly rent obligated to be paid by Motus GI to their landlord.

Operating cash flow supplemental information for the three months ended March 31, 2024:

Cash paid for amounts included in the present value of operating lease liabilities was $228,000 during the three months ended March 31, 2024 compared to $205,000 during the three months ended March 31, 2023.

As of March 31, 2024:
Weighted average remaining lease term – operating leases, in years	3.54
Weighted average discount rate – operating leases	9.21	%

Operating Leases

Rent/lease expense for office and lab space was approximately $219,000 and $209,000, respectively, for the three months ended March 31, 2024 and 2023. The table below shows the future minimum rental payments, exclusive of taxes, insurance, and other costs, under the leases as of March 31, 2024:

	Operating
	Leases
Year ending December 31:	(in thousands)
2024 (remaining nine months)	$	509
2025		339
2026		464
2027		476
2028		159
Thereafter		—
Total future minimum lease payments	$	1,947
Imputed interest		(323)
Total liability	$	1,624