Leases

12 Months Ended

Dec. 31, 2023

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 one to three years, and one facility lease had a renewal option for two years. The renewal option was initially excluded from the determination of the lease term as it was not reasonably certain of exercise. In August 2022, the Company exercised the renewal option and amended the terms of the option, which has been accounted for as a lease modification. The ROU asset and operating lease liability were remeasured at the modification date, resulting in an increase to both balances of $0.7 million during the year ended December 31, 2022. There were no lease modifications during the year ended December 31, 2023.

Operating lease costs were $0.4 million for each of the years ended December 31, 2023 and 2022. Cash paid for amounts included in the measurement of operating lease liabilities was $0.4 million for each of the years ended December 31, 2023 and 2022. As of December 31, 2023 and 2022, the weighted average incremental borrowing rate was 8.60% and 8.76%, respectively, and the weighted average remaining lease term was 2.0 years and 2.8 years, respectively.

The following table summarizes the Company’s operating lease maturities as of December 31, 2023 (in thousands):

Years ending December 31:
2024	$	386
2025		195
2026		55
Total remaining lease payments		636
Less: imputed interest		(47	)
Total lease liabilities	$	589

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.