Operating Leases

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

The Company has commitments under operating leases for its current headquarters as well as for additional office space. The Company's operating lease for its current headquarters includes 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 with commencement dates in December 2020 and 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 had a lease agreement for its former headquarters, which was terminated in January 2021 without penalty pursuant to the terms of the Lease Agreement. The termination was accounted for as a modification per ASC 842 as the contractual lease term of the former lease agreement was shortened. The Company also had a lease agreement for a former laboratory space, which was terminated in December 2020.

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


	Year ended December 31,
	2021		2020		2019
Operating lease cost	$	360	$	189	$	250
Variable lease cost	105		85		80
Total lease cost	$	465	$	274	$	330

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


	As of December 31,
	2021		2020
Right-of-use assets, net	$	1,587	$	434

Current lease obligations	$	363	$	44
Non-current lease obligations	1,231		389
Total lease liabilities	$	1,594	$	433

Supplemental information related to leases was as follows:


	Year ended December 31,
	2021		2020		2019
Weighted-average remaining lease terms — operating leases (years)	5.3		6.9		2.0
Weighted-average discount rate — operating leases	4.1	%	4.6	%	7.6	%

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


For the years ending December 31,	Amount
2022	$	440
2023	261
2024	269
2025	277
2026	285
Thereafter	293
Total	$	1,825
Less: present value adjustment	(231)
Present value of minimum lease payments	$	1,594

In October 2021, the Company entered into a lease agreement for additional office space located in Malvern, Pennsylvania. The lease has an expected commencement date in the first half of 2022 and has an initial term of seven years. The aggregate estimated base rent payments due over the initial seven-year term is $3.8 million, which is excluded from the future minimum operating base rent payments above as the lease agreement has not yet commenced per ASC 842. Additionally, the Company will be responsible for the operating expenses and utilities associated with the leased premises. The Company has the option to extend the lease agreement for two additional five-year terms, provided the Company is not under an event of default pursuant to the terms of the lease agreement.