Operating Leases

3 Months Ended

Mar. 31, 2022

Operating Leases

Operating Leases

6. Operating Leases

The Company rents office and laboratory space in the United States. The Company also leases office equipment under non-cancellable equipment leases through June 2026. Rent expense during the three months ended March 31, 2022 and 2021 under all of the Company’s operating leases was $0.1 million and $0.1 million, respectively. Rent expense includes short-term leases and variable lease costs that are not included in the lease obligation.

Short-term leases are leases having a term of twelve months or less. The Company recognizes short-term leases on a straight-line basis and does not record a related lease asset or liability for such leases.

The office space leases provide for increases in future minimum annual rental payments as defined in the lease agreements. The office space lease also includes an option to renew the lease as of the end of the term. The Company has determined that the lease renewal option is not reasonably certain of being exercised.

The cash paid for operating lease liabilities for both the three months ended March 31, 2022 and 2021 was $0.1 million.

Supplemental other information related to the operating leases balance sheet information is as follows (in thousands, except lease term and discount rate):

	March 31, 2022			December 31, 2021
Operating lease obligations (see Note 7 and 9)	$	1,437		$	1,535
Operating lease right-of-use assets (included in "Other assets" in Balance Sheet)	$	750		$	798
Weighted-average remaining lease term (years)		3.1			3.3
Weighted-average discount rate		7.2	%		7.2	%