The Company leases administrative, manufacturing, research and distribution facilities, and vehicles through operating lease agreements. The Company has no finance leases as of June 30, 2024. Many of the Company’s leases include both lease (e.g., fixed payments including rent) and non-lease components (e.g., common-area or other maintenance costs). For vehicles, the Company has elected the practical expedient to group lease and non-lease components.

Most facility leases include one or more options to renew. The exercise of lease renewal options is typically at the Company’s sole discretion, therefore, the majority of renewals to extend the lease terms are not included in the Right of Use (“ROU”) assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates renewal options and when they are reasonably certain of exercise, the renewal period is included in the lease term.

As most of the Company’s leases do not provide an implicit rate, the Company uses a collateralized incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments.

Total operating lease expense for the six months ended June 30, 2024 and June 30, 2023 was $12.8 million and $11.8 million, respectively, which includes $0.1 million, in related party operating lease expense.


Dollars in thousands, except lease term and discount rate	June 30, 2024			December 31, 2023
ROU assets	$	147,472		$	156,184

Current lease liabilities	14,613			15,284
Non-current lease liabilities	169,561			166,849
Total lease liabilities	$	184,174		$	182,133

Weighted average remaining lease term (in years):
Leased facilities	16.4 years			16.3 years
Leased vehicles	2.1 years			1.9 years

Weighted average discount rate:
Leased facilities	5.4		%	5.9		%
Leased vehicles	2.8		%	2.7		%


Dollars in thousands	June 30, 2024		June 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	12,029	$	9,505

ROU assets obtained in exchange for lease liabilities, net of modifications:
Operating leases	$	68	$	7,582


Dollars in thousands	Related Parties		Third Parties		Total
Remainder of 2024	$	148	$	11,736	$	11,884
2025	296		22,472		22,768
2026	296		20,397		20,693
2027	296		19,090		19,386
2028	296		16,971		17,267
2029	246		16,168		16,414
Thereafter	—		164,718		164,718
Total minimum lease payments	$	1,578	$	271,552	$	273,130
Less: Imputed interest					88,956
Total lease liabilities					184,174
Less: Current lease liabilities					14,613
Long-term lease liabilities					169,561

The Company leases one of its manufacturing facilities in Plainsboro, New Jersey, from a general partnership that is 50% owned by a principal stockholder of the Company. The term of the current lease agreement is through October 31, 2029 at an annual rate of approximately $0.3 million. The current lease agreement also provides (i) a 5-year renewal option for the Company to extend the lease from November 1, 2029 through October 31, 2034 at the fair market rental rate of the premises, and (ii) another 5-year renewal option to extend the lease from November 1, 2034 through October 31, 2039 at the fair market rental rate of the premises.

During the three months ended June 30, 2024, the Company approved a plan to transition the commercial distribution of PriMatrix® and SurgiMend® from the Boston facility to the Company’s manufacturing facility in Braintree, Massachusetts and permanently cease use of the Boston facility. As a result, the Company recorded a $4.6 million impairment charge for the three months ended June 30, 2024 as the carrying amounts of the operating lease right-of-use asset and fixed assets related to the Boston facility exceeded their fair values based on the Company’s estimates of future discounted cash flows through the end of the lease term and the end of their remaining useful lives, respectively. The $4.6 million impairment charge was comprised of a $1.7 million impairment of an operating lease right-of-use asset and a $2.9 million write-off of fixed assets, which was recorded as a component of cost of goods sold in the condensed consolidated statements of operations.