Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

10. Leases

Operating leases

In December 2020, the Company entered into an agreement to lease approximately 10.3 square feet of office space in New York, New York (“Office Lease”), which commenced in April 2021. The office space is owned by an affiliate of Deerfield Management Company, L.P., which together with its affiliates beneficially owned more than 5% of the Company’s voting securities at the time the lease was executed. Annual rent is approximately $1,117. The Office Lease has a term of approximately seven years and contains provisions for a free-rent period, annual rent increases and an allowance for tenant improvements. The Company has an option to extend the term by five years, however, the Company determined at the lease commencement date that it was not reasonably certain to exercise the renewal option and such renewal was excluded from the operating lease right-of-use, or ROU, asset and operating lease liability recorded for this lease.

The Company is responsible for real estate taxes, maintenance and other operating expenses applicable to the leased premises which are recognized as variable lease expense in the period when incurred. In conjunction with the Office Lease, the Company established a letter of credit of approximately $745 secured by cash balances included in restricted cash.

In June 2021, the Company amended the existing agreement with its contract development and manufacturing organization, or CDMO, establishing a term of eight-years from the amendment date. Prior to the amendment, the leased spaces met the short-term lease exception under a quarter-to quarter arrangement and were not included in measurement of lease liabilities.

Leases classified as operating leases are included in operating lease ROU assets, operating lease liabilities and operating lease liabilities, non-current, in the Company’s consolidated balance sheets. The Office Lease and the CDMO leased spaces are included in operating lease ROU assets and operating lease liabilities. Cash paid for operating lease liabilities was $1,009 and $66 during the years ended December 31, 2021 and 2020, respectively, which is included in operating cash flows. The ROU asset obtained in exchange for operating lease liabilities related to the Office Lease was $6,549.

The components of lease expense were as follows:

	For the year ended December 31,
Lease expense	2021		2020
Operating lease expense	$	1,050	$	93
Short-term lease expense		102		215
Total	$	1,152	$	308

Variable lease expense for the years ended December 31, 2021 and 2020 was not material.

The weighted average remaining lease term and the weighted average discount rate for operating leases were:

	For the year ended December 31,
	2021			2020
Weighted-average discount rate		7.0	%		12.0	%
Weighted-average remaining lease term – operating lease (in months)		79			87

The total remaining operating lease payments included in the measurement of lease liabilities on the Company’s consolidated balance sheet as of December 31, 2021, was as follows:

For the year ending December 31:	Operating Lease Payments
2022	$	1,327
2023		1,327
2024		1,327
2025		1,395
2026		1,429
Thereafter		2,234
Total gross operating lease payments		9,039
Less: imputed interest		(1,800	)
Total lease liabilities, reflecting present value of future minimum lease payments	$	7,239