Calyxt, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases, Commitments, and Contingencies

Leases, Commitments, and Contingencies

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Leases, Commitments, and Contingencies

8. LEASES, COMMITMENTS, AND CONTINGENCIES

Litigation and Claims

In the fourth quarter of 2022, the Company reached a settlement with one of its technology vendors regarding alleged intellectual property infringement. As a result of the settlement, the Company received $0.75 million in the fourth quarter of 2022, and it received the final installment of $0.75 million in the first quarter of 2023.

The Company is not currently a party to any other material pending legal proceedings.

Leases

The Company had an equipment financing arrangement that was considered a financing-type lease. This equipment financing arrangement was repaid in full in the first quarter of 2023. The Company was required to deposit cash into a restricted account in an amount equal to the future rent payments required by the lease. As of March 31, 2023, the remaining restricted cash had been returned to the Company.

The Company is obligated under a

non-cancellable

operating lease for office and laboratory space at its facility in Roseville, Minnesota. The lease has a remaining term of 15.1 years and has a ROU asset of $13.5 million as of March 31, 2023.

The Roseville, Minnesota lease includes four options to extend the lease for five years. These options to extend the lease are not recognized as part of the ROU assets and operating lease liabilities as it is not reasonably certain that the Company will exercise those options. The Company’s agreement does not include options to terminate the lease.

The components of lease expense were as follows:


	Three Months Ended March 31,
In Thousands	2023		2022
Finance lease costs	$	3	$	9
Operating lease costs		388		399
Variable lease costs		233		231

Total	$	624	$	639

Operating lease cost for short-term leases was not material for the three months ended March 31, 2023, or March 31, 2022.

Supplemental cash flow information related to leases was as follows:


	Three Months Ended March 31,
In Thousands	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows (operating leases)	$	72	$	67
Financing cash flows (finance leases)		97		94

Supplemental balance sheet information related to leases was as follows:


	As of March 31, 2023					As of December 31, 2022
	Operating			Financing		Operating			Financing
Weighted average remaining lease term (years)		15.1			—		15.3			0.4
Weighted average discount rate		7.9	%		—		7.9	%		8.1	%

As of March 31, 2023, future minimum payments under leases were as follows:


In Thousands	Operating			Financing		Total
Remainder of 2023	$	1,102		$	—	$	1,102
2024		1,480			—		1,480
2025		1,479			—		1,479
2026		1,479			—		1,479
2027		1,479			—		1,479
2028		1,553			—		1,553
Thereafter		15,438			—		15,438

		24,010			—		24,010
Less: imputed interest		(10,268	)		—		(10,268	)

Total	$	13,742		$	—	$	13,742