LEASES

12 Months Ended

Dec. 31, 2020

LEASESThe Company has historically entered into lease arrangements for its facilities. As of December 31, 2020, the Company had three 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 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 for its principal office, which is located 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 second quarter 2021 when the landlord delivers the space in accordance with the lease terms. The Company recognizes the respective lease balances on the 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 $18,751 in total minimum payments during the term, the table below excludes the minimum rental payments of $8,222 for the floor that has not commenced as of December 31, 2020. The Company was also required to issue a $1,168 letter of credit as security for the lease.

The Company also leases additional office space in Cambridge, MA. The lease commenced in February 2019 for approximately 2,357 square feet of office space. The lease expires on April 30, 2022, subject to an option to extend the lease for three additional years.

In December 2020, the Company entered into an eleven-year agreement with an option to extend for five additional years to lease approximately 18,120 square feet of office and laboratory space in New York, NY. The Company currently expects the lease to commence in the third quarter 2021 when the landlord delivers the space in accordance with the lease terms. The Company recognizes the lease balance on the consolidated balance sheet when the lease has commenced. Under the terms of the lease, the Company is required to make up to $21,373 in total minimum payments during the term of the lease. The table below excludes the minimum rental payments for the lease that has been executed but not commenced as of December 31, 2020.

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 year ended December 31, 2020:


	Year Ended December 31, 2020
Lease Cost
Operating lease cost	$	767
Short-term lease cost	769
Variable lease cost	44
Total lease cost	$	1,580


Other Operating Lease Information
Cash paid for amounts included in the measurement of lease liability	$	432
Weighted-average remaining lease term	7.5
Weighted-average discount rate	5.4		%

The variable lease costs for the year ended December 31, 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 December 31, 2020 were as follows:


2021	$	1,485
2022	1,343
2023	1,298
2024	1,331
2025	1,364
Thereafter	3,803
Total lease payments	10,624
Less: interest	(1,883)
Total lease liability	$	8,741

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,
2021	$	223
2022	228
2023	77
2024	—
Total	$	528

Rent expense for the years ended December 31, 2020 and 2019 was $1,545 and $415, respectively.