Operating Lease

12 Months Ended

Dec. 31, 2022

In April 2019, the Company entered into a twenty-eight month facility lease agreement for office space in Pacific Palisades, California (the “Pacific Palisades Lease”). The Pacific Palisades Lease commenced on May 1, 2019, included four months of rent abatement and a rent escalation clause and was set to expire on August 31, 2021. In August 2021, the Company exercised its option to extend the term of the Pacific Palisades Lease for an additional three-year period and entered into an amendment to the lease agreement (the “Pacific Palisades Lease Amendment”). Pursuant to the Pacific Palisades Lease Amendment, the Company and the landlord agreed to extend the term for an additional period of three (3) years and six (6) months, until February 28, 2025, with an option to renew for an additional three (3) years in accordance with the terms of the Pacific Palisades Lease. Included in the Pacific Palisades Lease Amendment were nine months of rent abatement and a rent escalation clause.

In April 2022, the Company entered into a lease agreement for office space in Morristown, New Jersey (the “Morristown Lease”). The Morristown Lease has a term of seventy-three months, unless terminated sooner, and includes rent abatement for the first three months and the forty-seventh and forty-eighth calendar months after lease commencement. Included in the Morristown Lease are fixed rent escalations of approximately 2% on each anniversary year of the lease term.

The following table summarizes information related to the Company’s lease (amounts in thousands):


	As of December 31,
	2022		2021
Assets:
Operating lease right-of-use assets	$	1,522	$	557

Liabilities:
Operating lease liabilities, current	$	394	$	131
Operating lease liabilities, non-current	1,267		474
Total operating lease liabilities	$	1,661	$	605

Rent expense for the years ended December 31, is presented on the following table (amounts in thousands):


	Year Ended December 31,
	2022		2021
Operating lease rent expense	$	382	$	188

Cash paid for leases and included in operating cash flows for the years ended December 31, is presented on the following table (amounts in thousands):


	Year Ended December 31,
	2022		2021
Cash paid included in operating cash flows	$	291	$	129

The future minimum lease payments required under the operating lease as of December 31, 2022, are summarized below (amounts in thousands):


Future Minimum Lease Payments:
2023	$	500
2024	512
2025	320
2026	231
2027	280
Thereafter	110
Total minimum lease payments	$	1,953
Less: amount representing interest	(292)
Present value of operating lease liabilities	$	1,661
Less: operating lease liabilities, current	(394)
Operating lease liabilities, non-current	$	1,267
Weighted average remaining lease term (in years)	4.53
Weighted average incremental borrowing rate	7.5		%