Leases

6 Months Ended

Jun. 30, 2023

8. Leases

65 Grove Street Lease

In July 2019, the Company entered into a lease with

BRE-BMR

Grove LLC for 25,078 square feet of laboratory and office space located at

Grove Street, Watertown, Massachusetts, or the Headquarters Lease. On September 1, 2022, the Company entered into an amendment, or the Lease Agreement Amendment, to the Headquarters Lease, to expand the Company’s corporate headquarters located at 65 Grove Street, Watertown, Massachusetts by approximately 7,216 square feet. In connection with the Lease Agreement Amendment, the Company secured a letter of credit for the Headquarters Lease from SVB for $1.6 million as of December 31, 2022.

In May 2023, the Company received notice from

BRE-BMR

Grove LLC that the requirements to reduce the amount of the letter of credit for the Headquarters Lease had been met. In connection therewith, in June 2023, the Company secured a letter of credit from JPMorgan Chase Bank, N.A. for $1.4 million, which is recognized as long-term restricted cash as of June 30, 2023, and renews automatically each year. As of June 30, 2023, the existing letter of credit from SVB for $1.6 million has been classified as current based on the anticipated release date of the restrictions of this cash.

For the three and six months ended June 30, 2023 and 2022, the components of lease costs were as follows (in thousands):


	Three Months Ended June 30,					Six Months Ended June 30,
	2023			2022		2023			2022
Operating lease cost	$	696		$	505	$	1,392		$	1,011
Variable lease cost		270			205		412			425
Short-term lease cost		2			2		5			5
Less: Sublease income		(251	)		—		(506	)		—

Total lease cost	$	717		$	712	$	1,303		$	1,441

The maturity of the Company’s operating lease liabilities as of June 30, 2023 were as follows (in thousands):


	June 30,
	2023
2023 (remainder)	$	1,349
2024		2,740
2025		2,818
2026		2,902
2027		2,990
Thereafter		946

Total future minimum lease payments		13,745
Less: Imputed interest		2,853

Total operating lease liabilities	$	10,892

The supplemental disclosure for the statement of cash flows related to operating leases was as follows (in thousands):


	Six Months Ended June 30,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:	$	1,319	$	924

The changes in the Company’s

right-of-use

assets and lease liabilities for the six months ended June 30, 2023 and 2022 are reflected in the

non-cash

lease expense and accrued expenses and other liabilities, respectively, in the consolidated statements of cash flows.

The following summarizes additional information related to operating leases:


	June 30,
	2023			2022
Weighted-average remaining lease term		4.9 years			5.9 years
Weighted-average discount rate		9.7	%		8.9	%