Leases

3 Months Ended

Mar. 31, 2022

Disclosure Text Block

Leases

7. Leases

The Company’s lease portfolio for the three months ended March 31, 2022 includes: an office lease for its current headquarters location, a data center colocation lease, vehicle leases for its salesforce representatives, and leases for computer and office equipment.

The Company’s office lease and vehicle lease require letters of credit to secure the Company’s obligations under the lease agreements totaling $1.7 million and are collateralized by money market accounts recorded as restricted cash on the Company’s condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021.

Lease cost is recognized on a straight-line basis over the lease term. The components of lease cost for the three months ended March 31, 2022 and 2021 are as follows (in thousands):

	Three Months Ended
	March 31,
	2022		2021
Operating lease cost	$	628	$	631
Short-term lease cost		260		214
Total lease cost	$	888	$	845

Supplemental information related to leases for the periods reported is as follows:

	Three Months Ended
	March 31,
	2022			2021
Cash paid for amounts included in the measurement of lease liabilities (in thousands)	$	789		$	773
Weighted-average remaining lease term of operating leases (in years)		8.1			9.0
Weighted-average discount rate of operating leases		5.8	%		5.8	%

Future minimum lease payments under non-cancelable operating leases as of March 31, 2022 are as follows (in thousands):

2022(1)	$	2,340
2023		3,065
2024		3,126
2025		3,189
2026		3,252
2027 and thereafter		11,603
Total future minimum lease payments		26,575
Less: present value adjustment		(5,447)
Operating lease liabilities		21,128
Less: current portion of operating lease liabilities		(3,097)
Operating lease liabilities, net of current portion	$	18,031

(1) For the nine months ending December 31, 2022.

Summer Street Lease

In June 2019, the Company entered into a non-cancelable operating lease (the “Summer Street Lease”) for approximately 39,000 square feet of office space on the 23^rd floor of 100 Summer Street, Boston, Massachusetts, which began serving as the Company’s headquarters in October 2019, replacing its prior headquarters at 301 Binney Street in Cambridge, Massachusetts. The Summer Street Lease terminates on June 11, 2030 and includes a 2% annual rent escalation, free rent periods, a tenant improvement allowance, and an option to extend the term of the lease for an additional five years at a market base rental rate. The rent expense, inclusive of the escalating rent payments and lease incentives, is recognized on a straight-line basis over the lease term.

At lease inception, the Company recorded a right-of-use asset and a lease liability using an incremental borrowing rate of 5.8%. At March 31, 2022, the balances of the right-of-use asset and operating lease liability were $15.0 million and $21.1 million, respectively. At December 31, 2021, the balances of the right-of-use asset and operating lease liability were $15.3 million and $21.5 million, respectively.

Lease costs recorded during each of the three months ended March 31, 2022 and 2021 were $0.6 million.