Commitments

12 Months Ended

Dec. 31, 2022

Commitments

Commitments

7.   Commitments

On January 28, 2022, the Company entered into a sublease agreement (the “Sublease”) with Grant Thornton LLP for new office space to replace its existing office space. The Sublease commenced on May 1, 2022 and will end on July 31, 2024 (or on such earlier date as the term may cease or expire as set forth in the Sublease). At inception of the Sublease, the Company recognized a lease liability and right-of-use asset of approximately $1.3 million. The lease liability represents the present value of the remaining lease payments, discounted using the Company’s estimated incremental borrowing rate of 7.49%. The ROU asset represents the lease liability adjusted for any prepaid and accrued rent payments. The Sublease is secured by a letter of credit in the amount of $0.2 million.

The Sublease is scheduled to expire in 2024. Future minimum payments required under the non-cancelable operating leases as of December 31, 2022 are:

Period Ending December 31,	Amount
2023		608
2024		395
Total lease payments	$	1,003
Less: imputed interest		(64)
Total operating lease liabilities	$	939

Sublease expense was $0.8 million and $0.7 million for the years ended December 31, 2022 and 2021, respectively. Cash payments made towards the Sublease were $0.8 million and $0.7 million for the years ended December 31, 2022 and 2021, respectively.