Leases

3 Months Ended

Mar. 31, 2022

The Company accounts for its leases in accordance with ASU No. 2016-02 (Topic 842) which requires that a lessee recognize the assets and liabilities that arise from operating leases. The ASU requires lessees to recognize a liability for lease obligations, which represents the discounted obligation to make future lease payments, and a corresponding right-of-use (ROU) asset on the balance sheet. The Company leases office space facilities and a research and development laboratory under non-cancelable operating leases with varying expirations extending through fiscal year 2028. The lease agreements provide for renewal options and rent escalation over the lease term as well as require the Company to pay maintenance, insurance and property taxes. Lease expense is recognized on a straight-line basis over the term of the lease.

Operating Leases

As of March 31, 2022, the Company had right-of-use assets and corresponding operating lease liabilities of approximately $4.1 million and $4.6 million, respectively. For the three months ended March 31, 2022 and 2021, the components of operating lease expense are as follows:


	Three Months Ended March 31,
(In thousands)	2022		2021
Operating leases
Operating lease expense	$	256	$	154
Variable lease expense	40		40
Operating lease expense	296		194
Short-term lease rent expense	64		62
Total expense	$	360	$	256


	At March 31, 2022
Weighted-average remaining lease term (years), operating leases	5.0
Weighted-average discount rate, operating leases	5.8	%

Future minimum lease payments under operating leases as of March 31, 2022 are as follows:


Year	(In thousands)
2022 (Remainder)	$	620
2023	949
2024	1,159
2025	1,141
2026	906
2027	498
Thereafter	179
Total	5,452
Less present value discount	(809)
Present value of total operating lease liabilities	4,643
Less current portion	(630)
Long-term obligations under operating leases	$	4,013