Note 5 - Operating Lease Right-of-use Asset, Net

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

(5) Operating Lease Right-of-Use Assets, Net

We determine if an arrangement is a lease at inception by assessing whether it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Our operating lease relates to a property lease for its laboratory and corporate offices which expires in January 2027. BioCardia’s lease agreement does not contain any material residual guarantees or material restrictive covenants.

ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Our lease does not provide an implicit rate. We used an adjusted historical incremental borrowing rate, based on the information available at the approximate lease commencement date, to determine the present value of lease payments. Variable rent expense is made up of expenses for common area maintenance and shared utilities and were not included in the determination of the present value of lease payments. We have no finance leases.

The components of lease expense for the years ended December 31, 2023 and 2022 were as follows (in thousands, except years and percentages):

	2023			2022
Straight-line rent expense recognized for operating lease	$	482		$	482
Variable rent expense recognized for operating lease		69			62
Total rent expense	$	551		$	544
Weighted average remaining lease term (in years)		3.1			4.1
Weighted average discount rate		10.74	%		10.74	%

Supplemental cash flow information related to the operating lease for the years ended December 31, 2023 and 2022 was as follows (in thousands):

	2023		2022
Cash paid for amounts included in the measurement of lease liabilities	$	315	$	237
Cash lease expense (imputed interest expense component of net loss)		156		187
Total rent expense	$	471	$	424

Future minimum lease payments under the operating lease as of December 31, 2023 are as follows (in thousands):

2024	$	485
2025		499
2026		514
2027		44
Total undiscounted lease payments	$	1,542
Less imputed interest		227
Total operating lease liabilities	$	1,315