Note 7. Leases

During October 2021, the Company entered into a new $491 thousand equipment financing lease. The Company leases its laboratory, research and administrative office spaces under various operating leases. As of December 31, 2022, the Company leased facilities in Maple Grove, Minnesota and in San Diego, California under arrangements which expire in 2027. These leases require monthly rent with periodic rent increases. Under the agreements, the Company is also liable for certain insurance, property tax and common area maintenance costs. As of April 1, 2021 the Company commenced a new lease for its corporate headquarters. The Company recorded a ROU asset and operating lease obligation of $83 thousand related to this lease. In January 2022, the Company recorded a $1.2 million ROU asset and related liability upon the signing of a new 5-year lease in San Diego, California.

The components of operating and finance lease expense in continuing operations for the years ended December 31, are as follows:

 Schedule of Components of Lease Expense and Supplemental Information

Amounts reported in the consolidated balance sheet from continuing operations as of December 31, 2022 and 2021 are as follows:

 Schedule of Amounts Reported in the Consolidated Balance Sheet

Equipment subject to finance leases are classified within fixed assets, net, on the accompanying consolidated balance sheets.

Annual future payments of lease liabilities under noncancelable leases as of December 31, 2022 are as follows:

 Schedule of Annual Payments of Lease liabilities Under Noncancelable leases