Commitments and Contingencies

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Leases

The Company subleases certain office and laboratory space under a non-cancelable operating lease expiring in January 2025 for the initial leased space and for the expansion space leased pursuant to an amendment to the lease agreement entered into in August 2018. In February 2022, the Company exercised its renewal option to extend the term of the expansion space until January 2025. The sublease agreement included options to extend for the entire premises through October 2028. The options to extend must be exercised prior to the termination of the original lease agreement. The period covered by the options was not included in the non-cancellable lease term as it was not determined to be reasonably certain to be executed. The lease is subject to charges for common area maintenance and other costs, and base rent is subject to an annual 3% increase each subsequent year. Costs determined to be variable and not based on an index or rate were not included in the measurement of the operating lease liabilities.

Monthly rent expense is recognized on a straight-line basis over the term of the leases. The operating leases are included in the condensed consolidated balance sheet at the present value of the lease payments at a weighted average discount rate of 7% using the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment as the leases do not provide an implicit rate. As of June 30, 2023, the weighted average remaining lease term was 1.6 years.

Lease costs were comprised of the following (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Operating lease cost	$	779	$	779	$	1,557	$	1,540
Short-term lease cost	13		10		26		20
Total lease cost	$	792	$	789	$	1,583	$	1,560

Cash paid for amounts included in the measurement of operating lease liabilities for the three months ended June 30, 2023 and 2022 was $0.8 million in both periods, and cash paid for amounts included in the measurement of operating lease liabilities for the six months ended June 30, 2023 and 2022 was $1.9 million in both periods, respectively.

Gross future minimum annual rental commitments as of June 30, 2023, were as follows (in thousands):


	Undiscounted Rent Payments
Year ending December 31
2023 (remaining 6 months)	$	1,662
2024	3,419
2025	144
Total undiscounted rent payments	$	5,225

Present value discount	(259)
Present value of lease payments	$	4,966
Current portion of operating lease liabilities (included as a component of accrued expenses and other current liabilities)	3,140
Noncurrent operating lease liabilities	1,826
Total operating lease liability	$	4,966

For the three months ended June 30, 2023 and 2022, the Company recorded $0.9 million and $0.8 million, in rent expense. For the six months ended June 30, 2023 and 2022, the Company recorded approximately $1.7 million in each period, respectively, in rent expense. Rent expense is included in research and development and general and administrative expense on the condensed consolidated statements of operations and comprehensive loss.