LEASES

3 Months Ended

Mar. 31, 2023

The Company has historically entered into lease arrangements for its facilities. As of March 31, 2023, 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. Additionally, on December 12, 2022, the Company entered into a sublease for one floor of its Cambridge, Massachusetts office space. The sublease terminates on August 31, 2028, which is also the date on which the Company's lease terminates.

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 months ended March 31, 2023 and 2022:


	Three Months Ended March 31,
		2023		2022
Lease Cost
Operating lease cost		$	1,054	$	1,059
Short-term lease cost		17		19
Variable lease cost		256		257
Sublease income		(135)		—
Total lease cost		$	1,192	$	1,335


Other Operating Lease Information	March 31, 2023			March 31, 2022

Cash paid for amounts included in the measurement of lease liability	$	1,051		$	702
Weighted-average remaining lease term	7.6			8.5
Weighted-average discount rate	5.3		%	5.3		%

The variable lease costs for the three months ended March 31, 2023 and 2022 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 March 31, 2023 were as follows:


	As of March 31, 2023
2023 (excluding the three months ended March 31, 2023)	$	3,192
2024	4,359
2025	4,477
2026	4,599
2027	4,724
Thereafter	12,250
Total lease payments	33,601
Less: interest	(6,148)
Total lease liability	$	27,453