LEASES

9 Months Ended

Sep. 30, 2022

The Company has historically entered into lease arrangements for its facilities. As of September 30, 2022, the Company had two operating leases with required future minimum payments. 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 lease on the second floor commenced March 9, 2021. The Company recognized the respective lease balances on the condensed consolidated balance sheets when the lease of each floor commenced. Under the terms of the lease, the Company was required to issue a $1,168 letter of credit as security for the lease.

The Company previously leased an office space in Cambridge, MA under a lease that commenced in February 2019 for approximately 2,357 square feet of office space, which was set to expire on April 30, 2022, subject to an option to extend the lease for three additional years. Effective June 15, 2021, the lease was terminated, and the remaining right-of-use asset and lease liability were derecognized. A gain of $5 was recognized for the termination of the lease.

In December 2020, the Company entered into an eleven-year agreement to lease approximately 18,120 square feet of office and laboratory space in New York, NY. The Company has an option to extend the lease for five additional years. The lease commenced August 26, 2021 and the related lease balance was recognized on the condensed consolidated balance sheet.

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, 2022 and 2021:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Lease Cost
Operating lease cost	$	1,057	$	900	$	3,173	$	1,975
Short-term lease cost	38		287		78		862
Variable lease cost	241		136		717		212
Total lease cost	$	1,336	$	1,323	$	3,968	$	3,049


Other Operating Lease Information	September 30, 2022			September 30, 2021
Gain on lease termination	$	—		$	5
Cash paid for amounts included in the measurement of lease liability	$	1,884		$	1,860
Weighted-average remaining lease term	8.1			8.9
Weighted-average discount rate	5.3		%	5.3		%

The variable lease costs for the three and nine months ended September 30, 2022 and 2021 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, 2022 were as follows:


	As of September 30, 2022
2022 (excluding the nine months ended September 30, 2022)	$	1,051
2023	4,244
2024	4,359
2025	4,477
2026	4,599
Thereafter	16,973
Total lease payments	35,703
Less: interest	(6,886)
Total lease liability	$	28,817