Commitments and Contingencies

3 Months Ended

Mar. 31, 2021

Commitments And Contingencies Disclosure [Abstract]

8. Commitments and Contingencies

Leases

The Company has three operating leases for real estate in California and Maryland:

•

Carlsbad, California – corporate offices with a term date of February 2023 and leased from a related party (see also Note 7 –Related Party Transactions);

•

Oceanside, California – primary research facility and laboratory space with a term date of December 2021;

•

Frederick, Maryland – mixed laboratory and administrative space with a term date of November 2025.

The Company’s operating leases for real estate are subject to additional variable charges for common area maintenance and other variable costs, and do not include an option to extend the lease term. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of future minimum lease payments over the lease term. As of March 31, 2021, total right-of-use assets and operating lease liabilities were approximately $805,000 and $1.1 million, respectively. All operating lease expense is recognized on a straight-line basis over the lease term. For the three months ended March 31, 2021 and 2020 lease expense totaled $118,000. As of March 31, 2021, the Company had no finance leases.

Maturities of lease liabilities were as follows (in thousands):

Years ending December 31,
2021 (remaining nine months)	$	387
2022		394
2023		255
2024		233
2025		240
Thereafter		—
Total minimum lease payments		1,509
Less: imputed interest		(400	)
Total future minimum lease payments		1,109
Less: operating lease liabilities, current		(328	)
Operating lease liabilities, net of current portion	$	781

Licensed Patents

The Company has a minimum annual license fee of $75,000 payable in two installments per year to Astellas Pharma pursuant to the amended UMass IP license agreement. The license agreement with Astellas Pharma may be terminated by the Company at any time with a 30-day notice.