Leases

3 Months Ended

Mar. 31, 2021

8. Leases

In June 2012, the Company entered into a master lease for the Company’s corporate office headquarters in

Boston, Massachusetts, which

was originally set to expire in August 2016, but renewed through August 31, 2021. As of March 31, 2021 and December 31, 2020, a total security deposit of $0.1 million is included in deposits on the Company’s balance sheet. On January 30, 2018, the Company entered into a lease agreement

for office space in Houston, Texas,

at MD Anderson. Under the terms of the Houston lease agreement, the Company leased approximately

210 square feet and were required to make rental payments at an average monthly rate of approximately

$1 thousand. This lease was terminated effective March 31, 2020.

On January 30, 2018, the Company entered into a lease agreement, or the First Houston Lease, for office space in Houston, Texas at MD Anderson through April 2021. On March 12, 2019, the Company entered into a lease agreement, or the Second Houston Lease, for additional office

pace in Houston through April 2021. Under the terms of the First Houston Lease agreement, the Company leases approximately

1,038 square feet and is required to make rental payments at an average monthly rate of approximately $2 thousand through April 2021.

Under the terms of the Second Houston Lease, the Company leases from MD Anderson, approximately

8,443 square feet and is initially required to make rental payments of approximately $17 thousand

per month

through February 2027, subject to an annual base rent increase of approximately 3.0% throughout the term. Effective April 13, 2020, the Company leased an additional 5,584 square feet from MD Anderson. The Company is initially required to make rental payments of approximately $12 thousand per month through February 2027, subject to an annual base rent increase of approximately 3.0%

throughout the term. All future rent expense incurred in Houston, will be deducted from the Company’s prepayments to MD Anderson.

Effective December 15, 2020, the Company leased an additional

35,482

square feet from MD Anderson. The Company is initially required to make rental payments of approximately

$37

thousand per month through April 2028, subject to an annual base rent increase of approximately

3.0%

throughout the term beginning in April 2023. Future rent expense incurred in Houston, will be deducted from the Company’s prepayments to MD Anderson.

The components of lease expense were as follows:


(in thousands)	Three Months Ended March 31, 2021
Operating lease cost	$	381

Total lease cost	$	381

Weighted-average remaining lease term (years)		6.21
Weighted-average discount rate		8.00	%

Effective June 1, 2020, the Company entered into a noncancelable lease for a period of less than a year with monthly payments of approximately $10 thousand that is not subject to right of use asset recognition under ASC 842. Effective September 1, 2020, the Company added additional space to the noncancelable lease for a period of less than a year with monthly payments now totaling approximately $15 thousand. The Company recorded approximately $0.1 million in rent expense under this short-term lease during the three months ended March 31, 2021

As of March 31, 2021, the maturities of the Company’s operating lease liabilities for the years ended December 31, were as follows (in thousands):


2021 (excluding the three months ended March 31, 2021)	$	879
202 2		800
202 3		820
202 4		844
202 5		869
Thereafter		1,519

Total lease payments		5,731
Less: Imputed interest and adjustments		(1,231	)

Present value of lease payments	$	4,500