Axogen, Inc. Annual report pursuant to Section 13 and 15(d)

Leases (Tables)

12 Months Ended

Dec. 31, 2022

The components of total lease expense for the years ended were as follows:


	Years Ended December 31,
(in thousands)	2022		2021		2020
Finance lease costs
Amortization of right-of-use assets	$	20	$	22	$	22
Interest on lease obligations	2		2		3
Operating lease costs
Operating lease costs	4,077		4,326		2,777
Short-term lease costs	72		10		116
Variable lease costs	1,241		744		18
Total lease expense	$	5,412	$	5,104	$	2,936

Supplemental balance sheet information related to the operating and financing leases is as follows:


(In thousands, except lease term and discount rate)	December 31, 2022			December 31, 2021
Operating Leases
Right-of-use operating assets	$	14,369		$	15,193
Current maturities of long-term lease obligations	$	1,303		$	1,825
Long-term lease obligations	$	20,387		$	20,794
Financing Leases
Right-of-use financing leases (1)	$	41		$	42
Current maturities of long-term lease obligations	$	7		$	9
Long-term lease obligations	$	18		$	4

Weighted average operating lease term (in years):	11			12
Weighted average financing term (in years):	4			2

Weighted average discount rate operating leases	10.58		%	10.32		%
Weighted average discount rate financing leases	11.91		%	7.23		%

(1) Financing leases are included in property and equipment, net on the consolidated balance sheets.

Future minimum lease payments under operating and financing leases as of December 31, 2022, were as follows:


(In thousands)
Year ending December 31,
2023	$	3,519
2024	3,297
2025	3,336
2026	3,348
2027	2,921
Thereafter	20,931
Total	$	37,352
Less: Imputed interest	(15,637)
Total lease liability	21,715
Less: Current lease liability	(1,310)
Long-term lease liability	$	20,405

Future minimum lease payments under operating and financing leases as of December 31, 2022, were as follows:


(In thousands)
Year ending December 31,
2023	$	3,519
2024	3,297
2025	3,336
2026	3,348
2027	2,921
Thereafter	20,931
Total	$	37,352
Less: Imputed interest	(15,637)
Total lease liability	21,715
Less: Current lease liability	(1,310)
Long-term lease liability	$	20,405