Leases

12 Months Ended

Dec. 31, 2022

10. LEASES

On October 1, 2022, our Lease for our principal executive offices with 76/80 BURLINGTON GROUP LLC (the “Landlord”) commenced. We leased 20,730 rentable square feet at 76 Blanchard Road in Burlington, Massachusetts (the “Leased Space”) for a term of ten years and six months, which includes a one-time termination right after seven years and six months. The term of the Lease commenced on October 1, 2022, the date that the landlord notified us that the planned construction on the Leased Space was substantially complete. The Lease provides for an aggregate of $8.2 million of rent payments over the Lease term and also provides a renewal option for up to two additional terms of five years each.

The components of lease expense included in the consolidated statement of operations and comprehensive loss are as follows (in thousands):


	For the Year Ended December 31,
	2022		2021
Operating lease costs	$	182	$	-

Supplemental balance sheet information related to the Company's operating lease was as follows (in thousands):


	As of December 31,
	2022			2021
Operating lease right-of-use assets	$	4,538		$	-

Current portion, operating lease liabilities		470			-
Operating lease liabilities, long term		4,047			-
Total operating lease liabilities	$	4,517		$	-

Weighted average remaining lease term (years)		10.3
Weighted average incremental borrowing rate		10.1	%

The discount rate implicit in the lease was not readily determinable, as such, we engaged a third-party valuation specialist to calculate the incremental borrowing rate (“IBR”). The IBR was determined as of the lease commencement date and was dependent on several factors including the amount of lease payments, our credit rating based on a collateralized borrowing, the lease term and the currency of the lease.

Future minimum lease payments for operating leases with initial remaining terms in excess of one year as of December 31, 2022 are as follows:


2023	$	497
2024		667
2025		687
2026		708
2027		729
Thereafter		4,202
Total lease payments		7,490
Less implied interest		(2,973	)
Total operating lease liabilities	$	4,517