Operating Leases

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Operating Leases

Operating Leases

The Company has commitments under an operating lease for certain facilities used in its operations including for the use of laboratory, office, and storage space located in Malvern, Pennsylvania (the “Lease Agreement”). The Lease Agreement was determined to have two lease components per ASC 842, a laboratory space lease component (the "Initial Premises") and an office, storage, and future expanded laboratory space lease component (the "Expansion Premises"), with varying commencement dates. The Initial Premises commencement date occurred in December 2020 and the Expansion Premises commencement date occurred in January 2021. The Lease Agreement has an initial term of seven years and the Company has the option to extend the Lease Agreement for one additional five-year term. The option for extension has been excluded from the lease term (and lease liability) for the Lease Agreement as it is not reasonably certain that the Company will exercise such option. The Company terminated a former lease agreement for its previous office space with the same landlord without penalty upon the commencement of the Expansion Premises in January 2021.

The components of lease expense were as follows (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Operating lease cost	$	66	$	48	$	200	$	143
Variable lease cost	26		21		79		62
Total lease cost	$	92	$	69	$	279	$	205

Supplemental balance sheet information related to leases was as follows (in thousands):

	September 30, 2021		December 31, 2020
Right-of-use assets, net	$	1,430	$	434
Current lease obligations	$	172	$	44
Non-current lease obligations	1,280		389
Total lease liabilities	$	1,452	$	433

Supplemental information related to leases was as follows:

	Nine months ended September 30,
	2021		2020
Weighted-average remaining lease term — operating leases (years)	6.2		1.4
Weighted-average discount rate — operating leases	4.6	%	7.6	%

Future minimum operating lease base rent payments are approximately as follows (in thousands):

For the Years Ending December 31,	Amount
Remainder of 2021	$	41
2022	252
2023	261
2024	269
2025	277
Thereafter	578
Total	$	1,678
Less: present value adjustment	(226)
Present value of minimum lease payments	$	1,452

Subsequent to September 30, 2021, the Company entered into a lease agreement for additional office space located in Malvern, Pennsylvania. See Note 14 for additional information.