Leases

3 Months Ended

Mar. 31, 2022

(9)

Leases

In December 2017, the Company signed an operating lease for 7,531 rentable square feet of office space in Cambridge, Massachusetts, which commenced on February 1, 2018. The lease expires on June 30, 2024. Rent expense is recorded ratably over the lease period. The lease includes escalating rental payments, which are also being charged to rent expense ratably over the lease period.

The components of lease expense are as follows (in thousands):


		Three Months Ended March 31, 2022
Operating lease costs	$	147
Short term lease costs		—
Variable lease costs		—

The following table summarizes supplemental cash flow information (in thousands):


		Three Months Ended March 31, 2022
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	151
ROU asset obtained in exchange for an operating lease liability		1,311

The following table summarizes the Company’s future minimum lease payments and reconciliation of lease liabilities (in thousands):


		As of March 31, 2022
Remainder of 2022		$457
2023		618
2024		313
Total future minimum lease payments		$1,388
Less: imputed interest		(133)
Total lease liabilities at present value		$1,255
Lease liabilities, current		$519
Lease liabilities, non-current		$736

The following table summarizes lease term and discount rate:


	Three Months Ended March 31, 2022
Weighted-average remaining lease term (years)	2.3
Weighted-average discount rate	9.5%

As the Company’s operating leases did not provide an implicit rate, the Company used its incremental borrowing rate based on the information available in determining the present value of lease payments. The Company’s incremental borrowing rate was based on the term of the lease, the economic environment of the lease and reflect the rate the Company would have had to pay to borrow on a secured basis.