LEASES

12 Months Ended

Dec. 31, 2021

The Company entered into a lease agreement for office and laboratory space in Houston, Texas commencing in July 2020 and expiring in 2023. The Company recorded ROU assets of $0.5 million and a corresponding lease liability of $0.6 million upon lease commencement. In October 2020, in connection with the Company’s restructuring plan, Management elected to seek an exit to its leased office and laboratory space in Houston, Texas. As a result of this decision, the Company reclassified the assets and liabilities associated with the leased facility as held for sale. The reclassified assets included a right-of-use asset of $0.5 million, property and equipment of $2.3 million, and related lease liability of $0.7 million. Based on the cost to exit the lease and the net realizable value of the related assets, the Company recognized an impairment charge of $1.3 million in 2020. The disposal of the assets and liabilities associated with the facility was completed on February 26, 2021. Under the terms of the agreement a third party assumed the lease for the facility. In addition, the third party paid $1.1 million to the Company for substantially all of the property, and equipment associated with the location. The consideration included $0.9 million in cash and an unsecured promissory note for $0.2 million.

On March 15, 2021, the Company entered an agreement to terminate its sub-lease of the South San Francisco office space contingent upon consent of the prime lessor. Under the terms of the agreement, the company agreed to pay a lease termination fee of $0.9 million while the security deposit of $0.2 million was returned to the Company. On March 26, 2021, the Company met all of the conditions of the agreement and disposed of substantially all of the assets and liabilities associated with the lease including the right-of-use asset of $0.6 million, leased equipment with net book value less than $0.1 million, and the related lease liability of $1.0 million. The Company recognized a loss on termination of $0.5 million during the year ended December 31, 2021.

Components of lease cost are as follows:


(in thousands)	Year Ended December 31, 2021			Year Ended December 31, 2020
Finance lease cost:
Amortization of leased assets	$	16		$	74
Interest on lease liabilities	5			21
Operating lease cost	56			814
Short-term lease cost	53			582
Total lease cost	$	130		$	1,491

Weighted-average remaining lease term:
Operating leases	0.0 years			1.7 years
Finance leases	0.0 years			1.4 years
Weighted-average discount rate:
Operating leases	—		%	11.47		%
Finance leases	—		%	13.05		%

Supplemental cash flow information and non-cash activity related to the Company’s operating and finance leases are as follows:


(in thousands)	Year Ended December 31, 2021		Year Ended December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	71	$	950
Operating cash flows from finance leases	5		21
Financing cash flows from finance leases	35		74

LEASES

Components of lease cost are as follows:


(in thousands)	Year Ended December 31, 2021			Year Ended December 31, 2020
Finance lease cost:
Amortization of leased assets	$	16		$	74
Interest on lease liabilities	5			21
Operating lease cost	56			814
Short-term lease cost	53			582
Total lease cost	$	130		$	1,491

Weighted-average remaining lease term:
Operating leases	0.0 years			1.7 years
Finance leases	0.0 years			1.4 years
Weighted-average discount rate:
Operating leases	—		%	11.47		%
Finance leases	—		%	13.05		%

Supplemental cash flow information and non-cash activity related to the Company’s operating and finance leases are as follows:


(in thousands)	Year Ended December 31, 2021		Year Ended December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	71	$	950
Operating cash flows from finance leases	5		21
Financing cash flows from finance leases	35		74