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Operating Leases
6 Months Ended
Jun. 30, 2024
Operating Leases [Abstract]  
Operating Leases

7. Operating Leases

 

The Company leases its headquarters office space in Minnesota and leases office space in Germany. The lease for the Company’s headquarters office space expires at the end of 2030. This headquarters office space lease is with a stockholder, which is considered a related party. During the quarter ended June 30, 2024, the Company and the landlord agreed to extend the lease for three (3) additional years and the lease now terminates on December 31, 2030. The Company requested and the landlord provided an additional 1,664 square feet of usable office space, for a total of 11,540 square feet of rentable space. Accordingly, base rent was increased to $5,587 per month and increases each year by approximately four (4) percent each year. As well, tenant improvements completed by the landlord totaling $150,000 will be repaid in three (3) $50,000 annual payments beginning July 1, 2027. The lease of the office space in Germany is not with a related party and is immaterial.

 

The components of leases and lease costs were as follows (in thousands):

 

   June 30,
2024
   December 31,
2023
 
Operating lease right-of-use assets (related party)  $1,109   $464 
           
Operating lease liabilities (related party), current portion  $175   $158 
Operating lease liabilities (related party), net of current portion   1,121    404 
   $1,296   $562 

 

   Six Months Ended
June 30,
 
   2024   2023 
Operating lease cost  $208   $68 

 

Other supplemental information of lease amounts recognized in the unaudited condensed consolidated financial statements is summarized as follows:

 

   Six Months Ended
June 30,
 
   2024   2023 
Cash paid for amounts included in the measurement of operating lease liabilities  $118   $111 

 

   June 30,
2024
   December 31,
2023
 
Weighted-average remaining lease term (in years)   6.5    3.9 
Weighted-average discount rate   5.0%   5.0%

 

Future minimum lease payments associated with these leases were as follows as of June 30, 2024 (in thousands):

 

   Amount 
2024 (remaining)  $92 
2025   229 
2026   223 
2027   230 
2028   195 
Thereafter   349 
    1,318 
Less: Imputed interest   (22)
   $1,296