Leases

3 Months Ended

Mar. 31, 2023

The Company accounts for its leases in accordance with ASU No. 2016-02 (Topic 842) which requires that a lessee recognize the assets and liabilities that arise from operating leases. The ASU requires lessees to recognize a liability for lease obligations, which represents the discounted obligation to make future lease payments, and a corresponding right-of-use (ROU) asset on the balance sheet. The Company leases office space facilities and a research and development laboratory under non-cancelable operating leases with varying expirations extending through fiscal year 2029. The lease agreements provide for renewal options and rent escalation over the lease term as well as require the Company to pay maintenance, insurance and property taxes. Lease expense is recognized on a straight-line basis over the term of the lease.

Operating Leases

As of March 31, 2023, the Company had right-of-use assets and corresponding operating lease liabilities of approximately $3.4 million and $4.1 million, respectively. For the three months ended March 31, 2023 and 2022, the components of operating lease expense are as follows:


	Three Months Ended March 31,
(In thousands)		2023		2022
Operating leases
Operating lease expense		$	231	$	359
Variable lease expense		53		139
Operating lease expense		284		498
Short-term lease rent expense		4		191
Total expense		$	288	$	689


	At March 31, 2023
Weighted-average remaining lease term (years), operating leases	4.2
Weighted-average discount rate, operating leases	5.7	%

Future minimum lease payments under operating leases as of March 31, 2023 are as follows:


Year	(In thousands)
2023 (Remainder)	$	692
2024	1,101
2025	1,135
2026	901
2027	491
2028	358
Thereafter	30
Total	4,708
Less present value discount	(658)
Present value of total operating lease liabilities	4,050
Less current portion	(697)
Long-term obligations under operating leases	$	3,353