Note 12. Leases

The Company has operating leases for corporate offices and certain equipment. These leases have remaining lease terms of one year to approximately twenty years, some of which include options to extend the leases for multiple renewal periods of five years to ten each. Under the terms of the facilities leases, the Company is required to pay its proportionate share of property taxes, insurance and normal maintenance costs.

In October 2022, Cryoport Systems entered into a lease agreement commencing in 2024, for an administrative, global supply chain center and research and development center in Santa Ana, California, in the aggregate rental amount of $27.7 million spanning 10 years. This lease is not included in the balance sheet right of use asset and lease liability as it commences in 2024.

The components of lease cost were as follows (in thousands):

Year Ended December 31, 

    

2022

    

2021

    

2020

Operating lease cost

$

5,505

$

4,556

$

1,835

Finance lease cost:

 

Amortization of right-of-use assets

79

61

56

Interest on finance lease liabilities

12

8

10

91

69

 

66

Total lease cost

$

5,596

$

4,625

$

1,901

Other information related to leases was as follows (in thousands):

Supplemental Cash Flows Information

Year Ended December 31,

    

2022

    

2021

    

2020

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

Operating cash flows from operating leases

 

$

4,733

 

$

3,993

 

$

1,680

Operating cash flows from finance leases

 

$

82

 

$

65

 

$

77

Financing cash flows from finance leases

$

70

$

58

$

67

Right-of-use assets obtained in exchange for lease liabilities (in thousands):

Operating leases

 

$

12,384

 

$

10,175

 

$

10,708

Finance leases

$

259

$

$

230

December 31, 

 

    

2022

    

2021

 

Weighted-Average Remaining Lease Term

 

 

Operating leases

 

12.4 years

 

5.6 years

Finance leases

 

3.4 years

 

2.1 years

Weighted-Average Discount Rate

 

  

 

  

Operating leases

 

9.5

%  

5.1

%

Finance leases

 

7.8

%  

5.3

%

Future minimum lease payments under non-cancellable leases that have commenced as of December 31, 2022 were as follows (in thousands):

Operating

Finance

Years Ending December 31

    

Leases

    

Leases

2023

 

$

5,762

 

$

152

2024

 

5,493

 

91

2025

 

4,352

 

85

2026

 

3,918

 

56

2027

3,345

8

Thereafter

 

26,813

 

Total future minimum lease payments

 

49,683

 

392

Less imputed interest

 

(21,242)

 

(48)

Total

$

28,441

$

344

Operating

Finance

Reported as of December 31, 2022

    

Leases

    

Leases

Current lease liabilities

$

3,720

$

128

Noncurrent lease liabilities

 

24,721

 

216

Total

$

28,441

$

344

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Historical Timeline

Fiscal YearFiled
2022Feb 28, 2023Showing above
2021Feb 28, 2022
2020Mar 1, 2021
2019Mar 10, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.