10. Leases

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

SINTX

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 October 2031 (the term was extended in October 2023; see Note 11 below). The lease has one five-year extension option.

SINTX Armor

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.

TA&T

In connection with operation of its business, TA&T has entered into various leases from which it conducts its research, development and manufacturing activities. The leases have various expiration dates ranging from July 2023 through April 2025.

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, 2023, the operating lease right-of-use assets totaled approximately $1.8 million, and the operating lease liability totaled approximately 1.8 million. Non-cash operating lease expense during the nine months ended September 30, 2023 and 2022, totaled approximately $0.6 and $0.4 million, respectively. As of September 30, 2023, the weighted-average discount rate for the Company’s operating lease was 6.4%.

Operating lease future minimum payments together with the present values as of September 30, 2023, are summarized as follows:

 Schedule of Operating Lease Future Minimum Payments