LEASES

9 Months Ended

Sep. 30, 2020

The Company has historically entered into lease arrangements for its facilities. As of September 30, 2020, the Company had two operating leases with required future minimum payments. In applying the transition guidance under ASC 842, the Company determined the classification of these leases to be operating leases and recorded right-of-use assets and lease liabilities as of the effective dates. The Company’s leases generally do not include termination or purchase options.

Operating Leases

In February 2019, the Company entered into an agreement to lease approximately 2,357 square feet of office space for its principal office, which is located in Cambridge, MA. The lease expires on April 30, 2022, subject to an option to extend the lease for three additional years.

In July 2020, the Company entered into a seven-year agreement with an option to extend for five additional years to lease two floors totaling approximately 25,578 square feet of office space in Cambridge, MA. The lease on the first floor commenced on August 1, 2020 and the Company currently expects the lease of the second floor to commence in the fourth quarter 2020 when the landlord delivers the space in accordance with the lease terms. The Company recognizes the respective lease balances on the condensed consolidated balance sheets when the lease of each floor has commenced. Under the terms of the lease, the Company is required to make up to $17,048 in total minimum payments during the term and is required to issue a $1,168 letter of credit as security for the lease.

The following table contains a summary of the lease costs recognized under ASC 842 and other information pertaining to the Company’s operating lease for the three and nine months ended September 30, 2020:


	Three Months Ended September 30, 2020		Nine Months Ended September 30, 2020
Lease Cost
Operating lease cost	$	274	$	386
Short-term lease cost	211		476
Variable lease cost	9		31
Total lease cost	$	494	$	893


Other Operating Lease Information	September 30, 2020
Cash paid for amounts included in the measurement of lease liability	$	167
Weighted-average remaining lease term	7.4
Weighted-average discount rate	5.4		%

The variable lease costs for the three and nine months ended September 30, 2020 include common area maintenance and other operating charges. As the Company’s leases do not provide an implicit rate, the Company utilized its incremental borrowing rate to discount lease payments, which reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment.

Future minimum lease payments under the Company’s operating leases as of September 30, 2020 were as follows:


	As of September 30, 2020
2020 (excluding the nine months ended September 30, 2020)	$	266
2021	1,485
2022	1,351
2023	1,306
2024	1,339
Thereafter	4,829
Total lease payments	10,576
Less: interest	(1,891)
Total lease liability	$	8,685

As of December 31, 2019, future minimum lease payments under the Company’s lease obligations under ASC 840 were as follows:


Years Ending December 31,
2020	$	223
2021	228
2022	77
2023	—
Total	$	528