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Leases
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases Leases
The Company has an operating lease for its office and lab space in Cambridge, MA and operating and finance leases for certain equipment. In March 2020, the Company entered into the Seventh Amendment to the office and lab space lease (the Office Lease) to extend the term of the lease through March 2026. The Company has an option to extend the lease term of the Office Lease for an additional five years.
On April 5, 2021, the Company entered into an Eighth Amendment to the Office Lease, which granted the Company additional office space in its existing building for five years, beginning July 1, 2021, and committed the Company to lease payments of $4,983 over that period (the Expansion Lease). In connection with the Expansion Lease, the Company increased the balance of the security deposit by increasing the standby letter of credit for the benefit of its landlord by $157. The Expansion Lease also provided the Company with a tenant improvement allowance of $51. Independent from the option under the Office Lease, the Company has an option to extend the lease term of the Expansion Lease for an additional five years. The Company’s exercise of the options to extend the lease terms of both the Office Lease and Expansion Lease were not considered reasonably certain as of December 31, 2021.
The Expansion Agreement is a lease modification accounted for as a separate contract, because it expands the scope of the Office Lease and the additional lease payments are commensurate with market rents. The Company assessed the lease classification of the Expansion Lease as of the date of signing and determined that the Expansion Lease should be accounted for as an operating lease. The right-of-use asset and corresponding operating lease liability have been calculated based on the present value of lease payments over the lease term. The Company determined the appropriate incremental borrowing rate to utilize as a discount rate by using a synthetic credit rating which was estimated based on an analysis of outstanding debt of companies with similar credit and financial profiles. Since the operating lease is a net lease, as the non-lease components (i.e., common area maintenance) are paid separately from rent based on actual costs incurred, such non-lease components were not included in the right-of-use (ROU) asset and liability and are reflected as an expense in the period incurred.
As a result of the signing of the Expansion Lease in April 2021, the Company recorded an increase of $3,783 to its ROU asset and lease liabilities in the second quarter of 2021.
The Company had a standby letter of credit agreement for the benefit of its landlord in the amount of $478 in connection with the Office Lease and Expansion Lease as of December 31, 2021 and $321 in connection with the Office Lease as of December 31, 2020, collateralized by a money market account.
The Company has remaining finance lease terms of one year to five years for certain equipment, some of which include options to purchase at fair value. For the year ended December 31, 2021, the Company recorded assets under finance leases of $609 as property and equipment.
The components of lease expense were as follows:
Years ended December 31,
202120202019
Operating lease cost$3,502 $2,755 $2,160 
Finance lease cost:
Amortization of right-of-use assets$169 $101 $75 
Interest on lease liabilities28 21 20 
$197 $122 $95 
Supplemental balance sheet information related to leases was as follows:
Year ended December 31,
20212020
Operating leases:
Operating lease right-of-use assets$12,889 $10,936 
Operating lease liabilities, current$2,303 $1,437 
Operating lease liabilities$11,247 $10,158 
Finance leases:
Property and equipment, gross$1,038 $429 
Property and equipment, accumulated depreciation$(345)$(176)
Other liabilities, current$239 $93 
Other liabilities$449 $174 
Weighted-average remaining lease term:
Operating leases4.3 years5.2 years
Finance leases4.0 years2.9 years
Weighted-average discount rate:
Operating leases10.8 %10.8 %
Finance leases5.4 %6.9 %
Supplemental cash flow information related to leases was as follows:
Year ended December 31,
20212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$3,241 $2,394 
Operating cash flows from finance leases$28 $21 
Financing cash flows from finance leases$215 $116 
Rent expense was $3,390, $2,644 and $2,160 for the years ended December 31, 2021, 2020 and 2019, respectively.
Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows:
Operating leasesFinance leases
2022$3,795 $269 
20233,909 262 
20244,027 141 
20254,147 48 
2026 and thereafter1,310 8 
Total lease payments17,188 728 
Present value adjustment(3,638)(40)
Present value of lease liabilities$13,550 $688 
Leases Leases
The Company has an operating lease for its office and lab space in Cambridge, MA and operating and finance leases for certain equipment. In March 2020, the Company entered into the Seventh Amendment to the office and lab space lease (the Office Lease) to extend the term of the lease through March 2026. The Company has an option to extend the lease term of the Office Lease for an additional five years.
On April 5, 2021, the Company entered into an Eighth Amendment to the Office Lease, which granted the Company additional office space in its existing building for five years, beginning July 1, 2021, and committed the Company to lease payments of $4,983 over that period (the Expansion Lease). In connection with the Expansion Lease, the Company increased the balance of the security deposit by increasing the standby letter of credit for the benefit of its landlord by $157. The Expansion Lease also provided the Company with a tenant improvement allowance of $51. Independent from the option under the Office Lease, the Company has an option to extend the lease term of the Expansion Lease for an additional five years. The Company’s exercise of the options to extend the lease terms of both the Office Lease and Expansion Lease were not considered reasonably certain as of December 31, 2021.
The Expansion Agreement is a lease modification accounted for as a separate contract, because it expands the scope of the Office Lease and the additional lease payments are commensurate with market rents. The Company assessed the lease classification of the Expansion Lease as of the date of signing and determined that the Expansion Lease should be accounted for as an operating lease. The right-of-use asset and corresponding operating lease liability have been calculated based on the present value of lease payments over the lease term. The Company determined the appropriate incremental borrowing rate to utilize as a discount rate by using a synthetic credit rating which was estimated based on an analysis of outstanding debt of companies with similar credit and financial profiles. Since the operating lease is a net lease, as the non-lease components (i.e., common area maintenance) are paid separately from rent based on actual costs incurred, such non-lease components were not included in the right-of-use (ROU) asset and liability and are reflected as an expense in the period incurred.
As a result of the signing of the Expansion Lease in April 2021, the Company recorded an increase of $3,783 to its ROU asset and lease liabilities in the second quarter of 2021.
The Company had a standby letter of credit agreement for the benefit of its landlord in the amount of $478 in connection with the Office Lease and Expansion Lease as of December 31, 2021 and $321 in connection with the Office Lease as of December 31, 2020, collateralized by a money market account.
The Company has remaining finance lease terms of one year to five years for certain equipment, some of which include options to purchase at fair value. For the year ended December 31, 2021, the Company recorded assets under finance leases of $609 as property and equipment.
The components of lease expense were as follows:
Years ended December 31,
202120202019
Operating lease cost$3,502 $2,755 $2,160 
Finance lease cost:
Amortization of right-of-use assets$169 $101 $75 
Interest on lease liabilities28 21 20 
$197 $122 $95 
Supplemental balance sheet information related to leases was as follows:
Year ended December 31,
20212020
Operating leases:
Operating lease right-of-use assets$12,889 $10,936 
Operating lease liabilities, current$2,303 $1,437 
Operating lease liabilities$11,247 $10,158 
Finance leases:
Property and equipment, gross$1,038 $429 
Property and equipment, accumulated depreciation$(345)$(176)
Other liabilities, current$239 $93 
Other liabilities$449 $174 
Weighted-average remaining lease term:
Operating leases4.3 years5.2 years
Finance leases4.0 years2.9 years
Weighted-average discount rate:
Operating leases10.8 %10.8 %
Finance leases5.4 %6.9 %
Supplemental cash flow information related to leases was as follows:
Year ended December 31,
20212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$3,241 $2,394 
Operating cash flows from finance leases$28 $21 
Financing cash flows from finance leases$215 $116 
Rent expense was $3,390, $2,644 and $2,160 for the years ended December 31, 2021, 2020 and 2019, respectively.
Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows:
Operating leasesFinance leases
2022$3,795 $269 
20233,909 262 
20244,027 141 
20254,147 48 
2026 and thereafter1,310 8 
Total lease payments17,188 728 
Present value adjustment(3,638)(40)
Present value of lease liabilities$13,550 $688