Leases

12 Months Ended

Dec. 31, 2021

7. Leases

The Company recognizes right-of-use assets (“ROU assets”) and operating lease liabilities when it obtains the right to control an asset under a leasing arrangement with an initial term greater than 12 months. The Company adopted the short-term accounting election for leases with a duration of less than one year. The Company leases its facilities and certain IT and office equipment under non-cancellable operating leases. All of the Company’s leasing arrangements are classified as operating leases with remaining lease terms ranging from 1 to 3 years, and one facility lease has a renewal option for two years. Renewal options have been excluded from the determination of the lease term as they are not reasonably certain of exercise.

Operating lease costs were $0.4 million for each of the years ended December 31, 2021 and 2020. Cash paid for amounts included in the measurement of operating lease liabilities was $0.5 million and $0.4 million for the years ended December 31, 2021 and 2020, respectively. As of December 31, 2021 and 2020, the incremental borrowing rate was 9.76% and the weighted average remaining lease term was 2.3 years and 3.1 years, respectively.

The following table summarizes the Company’s operating lease maturities as of December 31, 2021 (in thousands):

Years ending December 31:
2022	$	371
2023		242
2024		186
Total remaining lease payments		799
Less: imputed interest		(89	)
Total lease liabilities	$	710

With respect to lease and non-lease components, the Company adopted the practical expedient to account for the lessee arrangement as a single lease component.