LEASES

6 Months Ended

Jun. 30, 2022

Leases

LEASES

6. LEASES

The Company accounts for leases over one year under ASC 842. Lease expense for the Company’s operating leases consists of the lease payments recognized on a straight-line basis over the lease term. Expenses for the Company’s financing leases consists of the amortization expenses recognized on a straight-line basis over the lease term and interest expense. The components of lease costs were as follows (in thousands): 

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Financing lease costs:
Amortization of ROU assets	$	319	$	–	$	638	$	–
Interest on lease liabilities		69		–		140		–
Total financing lease costs	$	388	$	–	$	778	$	–

Operating lease costs:
Fixed lease costs	$	62	$	62	$	124	$	114
Variable lease costs		–		–		–		–
Short-term lease costs		9		11		20		22
Total operating lease costs	$	71	$	73	$	144	$	136

Future minimum payments under non-cancellable leases as of June 30, 2022 were as follows (in thousands): 

For the Year Ended December 31,	Financing leases			Operating leases
Remaining 2022	$	718		$	115
2023		1,436			296
2024		1,436			278
2025		1,436			284
2026 & thereafter		478			21
Total future minimum lease payments	$	5,504		$	994
Less imputed interest		(530	)		(93	)
Total lease liability	$	4,974		$	901

The below table provides supplemental information and non-cash activity related to the Company’s operating and financing leases are as follows (in thousands): 

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Operating cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	54	$	36	$	108	$	38
Cash paid for amounts included in the measurement of financing liabilities	$	359	$	–	$	718	$	–
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations	$	–	$	–	$	–	$	382

The weighted average remaining discount rate is 5.25% for the Company’s operating and financing leases. The weighted average remaining lease term is 3.6 years for operating leases and 4.1 years for the financing lease.

In October 2016, the Company entered into a lease agreement for approximately 200 square feet of office space in Cambridge, Massachusetts. The lease, with current monthly payments of $2,942 per month, commenced on October 24, 2016. Because the lease is month to month and can be cancelled with a 30-day notice, the future lease payments are not included in the Company’s lease accounting under ASC Topic 842.