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

6 Months Ended

Jun. 30, 2023

14. Commitments and Contingencies

During three and six months ended June 30, 2023 and 2022, the Company recorded the following as lease expense to current period operations:


	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2023		2022		2023		2022
Operating lease cost	$	950	$	824	$	1,969	$	1,649
Shared lease costs		(519)		(523)		(1,034)		(1,050)
Variable lease cost		199		166		400		261
Total lease expense	$	630	$	467	$	1,335	$	860

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


	Six Months Ended June 30,
($ in thousands)	2023			2022
Operating cash flows from operating leases	$	(1,762)		$	(1,741)
Right-of-use assets exchanged for new operating lease liabilities	$	—		$	—
Weighted-average remaining lease term – operating leases (years)		4.4			5.0
Weighted-average discount rate – operating leases		6.5	%		6.3	%


	Future Lease
($ in thousands)	Liability
Six Months Ended December 31, 2023	$	1,788
Year Ended December 31, 2024		3,774
Year Ended December 31, 2025		3,768
Year Ended December 31, 2026		3,507
Year Ended December 31, 2027		3,191
Other		11,669
Total operating lease liabilities		27,697
Less: present value discount		(5,866)
Net operating lease liabilities, short-term and long-term	$	21,831

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.