Leases

9 Months Ended

Sep. 30, 2023

Leases

Leases

9. Leases

The Company leases laboratory and office space and certain equipment with remaining terms ranging from 1 to 2 years.

The laboratory and office space arrangement is under a sublease that was renewed in December of 2022 and currently extends through May 31, 2024. This lease automatically renews annually for one-year periods unless the Company or the counterparty provides a notice of termination within one hundred and eighty days prior to May 31^st of each year.

On January 5, 2022, the Company executed a four-month sublease agreement for certain laboratory and office space at its Holliston, Massachusetts facility. The Company further extended the sublease agreement on a month-to-month basis until August 31, 2022 when the other party vacated the premises. For the nine months ended September 30, 2022, the Company recorded sublease income of approximately $61,000 relating to this agreement.

All of the Company’s leases qualify as operating leases. The following table summarizes the presentation of the Company’s operating leases in its condensed consolidated balance sheets:

	Balance Sheet Classification	September 30, 2023		December 31, 2022
		(in thousands)
Assets:
Operating lease assets	Right-of-use asset, net	$	103	$	147
Liabilities:
Current portion of operating lease liabilities	Current portion of operating lease liabilities		92		99
Operating lease liabilities, net of current portion	Operating lease liabilities, net of current portion		11		48
Total operating lease liabilities		$	103	$	147

The Company recorded operating lease expense in the following categories in its condensed consolidated statements of operations:

	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
	(in thousands)				(in thousands)
Research and development	$	17	$	19	$	51	$	58
Sales and marketing		5		—		5		—
General and administrative		11		11		33		33
Total	$	33	$	30	$	89	$	91

Cash paid included in the computation of the operating lease assets and lease liabilities during the three and nine months ended September 30, 2023 amounted to approximately $33,000 and $89,000, respectively. Cash paid included in the computation of the operating lease assets and lease liabilities during the three and nine months ended September 30, 2022 amounted to approximately $30,000 and $91,000, respectively.

The weighted average remaining lease term and weighted average discount rate of the Company’s operating leases are as follows:

	As of September 30,
	2023			2022
Remaining lease term (in years)		0.66			0.94
Discount rate		12.77	%		9.35	%

The minimum lease payments for the next three years are expected to be as follows:

	As of
	September 30, 2023
	(in thousands)
2023	$	33
2024		69
2025		5
Total lease payments		107
Less: imputed interest		(4	)
Present value of operating lease liabilities	$	103