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

Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

14. Commitments and Contingencies

During the three months ended March 31, 2023 and 2022, the Company recorded the following as lease expense to current period operations:


	Three Months Ended March 31,
($ in thousands)	2023		2022
Operating lease cost	$	1,019	$	825
Shared lease costs		(515)		(527)
Variable lease cost		201		95
Total lease expense	$	705	$	393

The following tables summarize quantitative information about the Company’s operating leases, under the adoption of ASC Topic 842, Leases:


	Three Months Ended March 31,
($ in thousands)	2023			2022
Operating cash flows from operating leases	$	(876)		$	(871)
Right-of-use assets exchanged for new operating lease liabilities	$	—		$	—
Weighted-average remaining lease term – operating leases (years)		4.6			5.1
Weighted-average discount rate – operating leases		6.6	%		6.3	%


	Future Lease
($ in thousands)	Liability
Nine Months Ended December 31, 2023	$	2,675
Year Ended December 31, 2024		3,665
Year Ended December 31, 2025		4,134
Year Ended December 31, 2026		3,879
Year Ended December 31, 2027		3,572
Other		12,486
Total operating lease liabilities		30,411
Less: present value discount		(6,870)
Net operating lease liabilities, short-term and long-term	$	23,541

Indemnification

In accordance with its certificate of incorporation, bylaws and indemnification agreements, the Company has indemnification obligations to its officers and directors for certain events or occurrences, subject to certain limits, while they are serving at the Company’s request in such capacity. There have been no claims to date, and the Company has director and officer insurance to address such claims. The Company and its subsidiaries and partner companies also provide indemnification of contractual counterparties (sometimes without monetary caps) to clinical sites, service providers and licensors.