Commitments and Contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies [Abstract]

Commitments and Contingencies

12. Commitments and Contingencies

Lease Commitments

The Company has one operating lease for its office space which was amended effective March 1, 2022 for a term of 38 months with no residual value guarantees or material restrictive covenants. The amended lease provided for free rent for the first six and one-half months of the lease and continues the security deposit of $6,000. In addition to base rental payments included in the contractual obligations table below, the Company is responsible for our pro-rata share of the operating expenses for the building. Our lease cost for the years ended December 31, 2023 and 2022 was $44,000 and $44,000, respectively, and is included in general and administrative expenses. As of December 31, 2023, the right to use lease asset consisted of $53,000 and is included in other assets. Also, at December 31, 2023, current lease liability of $46,000 is included in accrued expenses and the noncurrent lease liability of $20,000 is included in other long term liabilities.  As of December 31, 2022, the right to use lease asset consisted of $86,000 and is included in other assets. Also, at December 31, 2022, current lease liability of $40,000 is included in accrued expenses and the noncurrent lease liability of $66,000 is included in other long term liabilities. The Company renewed its existing office space lease effective in February 2022 for 38 months at substantially the same terms.

Maturity of operating lease as of December 31, 2023 in thousands:

2024	$	51
2025		18
Total		69
Less imputed interest		3
Present value of lease liability	$	66

The discount rate used in calculating the present value of the lease payments was 11%.

Legal Proceedings

The Company records accruals for such contingencies to the extent that the Company concludes that their occurrence is probable and the related damages are estimable. There are no pending legal proceedings.

Clinical Trial and Research Contingencies

The Company has entered into agreements with contractors for research and development activities to further its product candidates. The contracts generally may be canceled at any time by providing thirty days’ notice.