Commitments and Contingencies

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Leases

The Company leases its facilities under long-term operating leases that expire at various dates through 2026. The Company generally has options to renew lease terms on its facilities, which may be exercised at the Company’s sole discretion. In addition, certain lease arrangements may be terminated prior to their original expiration date at the Company’s discretion. The Company evaluates renewal and termination options at the lease commencement date to determine if it is reasonably certain to exercise the option and has concluded on all operating leases that it is not reasonably certain that any options will be exercised. The weighted-average remaining lease term for the Company’s operating leases as of June 30, 2024 was 2.08 years.

Expense related to leases is recorded on a straight-line basis over the lease term. Lease expense under operating leases, including common area maintenance fees, totaled approximately $0.2 million for the three months ended June 30, 2024 and 2023 and $0.4 million and $0.3 million for the six months ended June 30, 2024 and 2023, respectively.

The discount rate implicit within the Company’s leases is generally not determinable and therefore the Company determines the discount rate based on its incremental borrowing rate based on the information available at commencement date. As of June 30, 2024, the operating lease liabilities reflect a weighted-average discount rate of 7.89%.

The following table sets forth the operating lease right-of-use assets and liabilities as of June 30, 2024 (in thousands):


Assets
Operating lease right-of-use assets	$	1,223

Liabilities
Operating lease short-term liabilities (recorded within Accrued liabilities)	$	680
Operating lease long-term liabilities (recorded within Lease-related obligations)	827
Total operating lease liabilities	$	1,507

Operating lease payments over the remainder of the lease terms are as follows (in thousands):


Years Ending December 31,	As of June 30, 2024



2024	$	382
2025	781
2026	467
Total future minimum rental payments	$	1,630
Less amount of lease payments representing interest	123
Total present value of lease payments	$	1,507

As of December 31, 2023, operating lease payments over the remainder of the lease terms were as follows (in thousands):


Years Ending December 31,	As of December 31, 2023




2024	$	759
2025	781
2026	467
Total future minimum rental payments	$	2,007
Less amount of lease payments representing interest	188
Total present value of lease payments	$	1,819

For the three months ended June 30, 2024 and 2023, the Company made lease payments of approximately $0.2 million and for the six months ended June 30, 2024 and 2023, the Company made lease payments of approximately $0.4 million.