Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Sep. 30, 2021

13. Leases


The Company has entered into two operating leases from which it conducts its business.


With respect to SINTX operations, the Company leases 29,534 square feet of office, warehouse and manufacturing space under a single operating lease. This lease expires at the end of 2024. The lease has two five-year extension options.


On August 19, 2021, the Company, on behalf of SINTX Armor, entered into an Industrial Lease Agreement (the “SINTX Armor Lease”) pursuant to which the Company has agreed to lease approximately 10,936 square feet of office and manufacturing space from which SINTX Armor will conduct its operations. The term of the SINTX Armor Lease is 122 months through October 2031.


Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense is recognized on a straight-line basis over the term of the lease. The Company accounts for lease components separately from the non-lease components. The depreciable life of the assets and leasehold improvements are limited by the expected lease term.


As of September 30, 2021, the operating lease right-of-use assets totaled approximately $2.5 million and the operating lease liability totaled approximately $2.5 million. Non-cash operating lease expense during the nine months ended September 30, 2021, totaled approximately $0.3 million. As of September 30, 2021, the weighted-average discount rate for the Company’s operating lease was 6.5%.


Operating lease future minimum payments together with the present values as of September 30, 2021, are summarized as follows :


Years Ending December 31,   September 30, 2021  
2021   $ 147  
2022     641  
2023     660  
2024     679  
2025     123  
Thereafter     795  
Total future minimum lease payments     3,045  
Less amounts representing interests     (542 )
Present value of lease liability     2,503  
Current-portion of operating lease liability     478  
Long-term portion operating lease liability   $ 2,025