LEASES

3 Months Ended

Mar. 31, 2023

Leases

LEASES

NOTE 8 – LEASES

The Company leases space under operating leases for manufacturing and laboratory facilities in Cleveland, Ohio, as well as administrative offices in New York, New York. The Company also leases certain office equipment under operating leases, which have a non-cancelable lease term of less than one year and, therefore, the Company has elected the practical expedient to exclude these short-term leases from the Company’s right-of-use assets and lease liabilities.

On March 31, 2022, the Company announced that they were pursuing a strategic partner to take over development activities of ABO-102 and that the Company was discontinuing development of ABO-101. As a result of this shift in priorities, the Company determined the portion of the lease that was dedicated to the future facility for the ABO-101 and ABO-102 programs, had no future value and thus, the Company recorded an impairment charge of $1.6 million for the three months ended March 31, 2022.

The following table provides a summary of the components of lease costs and rent (in thousands):

	For the three months ended March 31,
	2023		2022
Operating lease cost	$	415	$	472
Variable lease cost		39		96
Short-term lease cost		18		21
Total operating lease costs	$	472	$	589

Future minimum lease payments and obligations, which do not include short-term leases, of the Company’s operating lease liabilities as of March 31, 2023 were as follows (in thousands):

Future minimum lease payments and obligations	Operating Leases
2023, remainder	$	1,338
2024		1,815
2025		1,572
2026		811
2027		828
Thereafter		2,586
Total undiscounted operating lease payments		8,950
Less: imputed interest		1,631
Present value of operating lease liabilities	$	7,319

The weighted-average remaining term of the Company’s operating leases was 73 months and the weighted-average discount rate used to measure the present value of the Company’s operating lease liabilities was 7.2% as of March 31, 2023.

Future cash receipts from the Company’s sublease agreements as of March 31, 2023 are as follows (in thousands):

	Operating
Future cash receipts	Subleases
2023, remainder	$	313
2024		429
2025		343
Total future cash receipts	$	1,085