Company: MDXG
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001376339-25-000009
Chunk: 23

Company: MIMEDX GROUP, INC.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 23
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Weighted-average discount rate6.9 %8.3 %8.3 %The Company had no finance lease obligations or associated right of use assets outstanding as of December 31, 2024. Information related to lease costs are as follows (amounts in thousands):Year Ended December 31,202420232022Operating lease cost$1,478 $1,532 $1,620 Amortization of finance lease ROU assets51 47 47 Interest expense on finance lease liabilities2 7 10 Maturities of lease liabilities are as follows (amounts in thousands):Year Ending December 31,Operating Leases2025$1,671 20261,725 20271,355 20281,346 2029794 Thereafter— Total lease payments6,891 Less: imputed interest(879)Lease liability$6,012 Asset Retirement ObligationsCertain lease agreements require the Company to return designated areas of leased space to its original condition upon termination of the lease agreement, for which the Company records an asset retirement obligation and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. In subsequent periods, the asset retirement obligation is 

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accreted for the change in its present value and the capitalized asset is depreciated, both over the term of the associated lease agreement. Asset retirement obligations of $1.2 million are included in other liabilities in the consolidated balance sheets as of both December 31, 2024 and 2023.

7.    Goodwill and Intangible Assets, Net

GoodwillIn concert with the disbanding of its Regenerative Medicine business unit during the fourth quarter of 2023, management concluded that the Company operated as a single operating segment beginning at that time. This operating segment reflected its sole reporting unit for goodwill impairment testing purposes.For the annual impairment test performed on October 1, 2024, the Company performed a qualitative assessment to determine the existence of impairment. The qualitative assessment concluded that it was more likely than not that goodwill was not impaired and the Company did not proceed to the quantitative assessment. There was no impairment of goodwill in 2023 or 2022.The following table indicates the changes in the carrying amount of goodwill for 2024 and 2023 (in thousands):GoodwillBalance as of January 1, 2023$19,441 Activity— Balance as of December 31,