Quarterly report pursuant to Section 13 or 15(d)

Finance Lease Obligation

v3.22.4
Finance Lease Obligation
6 Months Ended
Dec. 31, 2022
Finance Lease Obligation [Abstract]  
Finance Lease Obligation

14.   Finance Lease Obligation

Sublease

As discussed above, until November 1, 2021, iBio CDMO leased the Facility as well as certain equipment from College Station under the Sublease.

The Sublease was terminated on November 1, 2021, when iBio CDMO acquired the Facility and became the tenant under the ground lease for the property upon which the Facility is located.  See Note 15 – Operating Lease Obligations for additional information related to the ground lease.

General and administrative expenses related to College Station, including rent related to the increases in CPI and real estate taxes, were approximately $61,000 and $250,000 for the three and six months ended December 31, 2021, respectively. Interest expense related to College Station was approximately $202,000 and $810,000 for the three and six months ended December 31, 2021, respectively. Such expenses were classified as part of loss from discontinued operations.

Equipment

As discussed above, the Company assumed three equipment leases that were accounted for as finance leases totaling $813,822 as part of the RubrYc Asset Purchase Agreement.  The monthly rental for the three leases is approximately $14,000 per month and all three expire on August 1, 2025.

Mobile Office Trailer

Commencing April 1, 2021, the Company leased a mobile office trailer that was located at the Facility in Bryan, Texas, at a monthly rental of $3,819 through March 31, 2024.  In December 2022, the Company terminated the lease and returned the mobile office trailer. Expenses related to lease prior to its termination are included in discontinued operations.

The following tables present the components of lease expense and supplemental balance sheet information related to the finance lease obligation (in thousands).

    

Three Months Ended

Three Months Ended

December 31, 

December 31, 

2022

2021

Finance lease cost:

 

  

  

Amortization of ROU assets

$

75

$

Interest on lease liabilities

 

16

 

Total lease cost

$

91

$

 

  

 

  

Other information:

 

  

 

  

Cash paid for amounts included in the measurement lease liabilities:

 

  

 

  

Operating cash flows from finance lease

$

$

Financing cash flows from finance lease obligations

$

72

$

    

Six Months Ended

Six Months Ended

December 31, 

December 31, 

2022

2021

Finance lease cost:

 

  

  

Amortization of ROU assets

$

88

$

Interest on lease liabilities

 

17

 

Total lease cost

$

105

$

 

  

 

  

Other information:

 

  

 

  

Cash paid for amounts included in the measurement lease liabilities:

 

  

 

  

Operating cash flows from finance lease

$

$

Financing cash flows from finance lease obligations

$

82

$

December 31, 

June 30,

2022

2022

Finance lease ROU assets

$

746

$

Finance lease obligation - current portion

$

259

$

Finance lease obligation - noncurrent portion

$

490

$

Weighted average remaining lease term - finance lease

 

2.59

years

 

years

Weighted average discount rate - finance lease obligation

 

9.50

%

 

%

Future minimum payments under the finance lease obligation are due as follows (in thousands):

Fiscal period ending on December 31:

    

Principal

    

Interest

    

Total

2023

$

152

$

43

$

195

2024

168

26

194

2025

 

155

 

8

 

163

 

  

 

  

 

  

Total minimum lease payments

 

475

$

77

$

552

Less: current portion

 

(152)

 

  

 

  

Long-term portion of minimum lease obligations

$

323