Leases

6 Months Ended

Jun. 30, 2022

Leases

Leases

8. Leases

Effective January 1, 2022, the Company adopted ASC 842 using the modified retrospective approach by applying the new standard to all leases existing on the adoption date. The results for reporting periods beginning after January 1, 2022 are presented in accordance with ASC 842, while prior period amounts are not adjusted and continue to be reported under the accounting standards that were in effect prior to January 1, 2022. The Company elected the practical expedient to recognize short-term leases under ASC 840.

In May 2017, the Company entered into a 62-month office and laboratory space lease commencing on July 1, 2017 for approximately 11,000 square feet of space in Exton, Pennsylvania. The Company has an option to extend the lease for up to two additional five-year terms. In December 2021, the Company extended the lease for an additional eighteen-month term ending in March 2024.

Beginning July 2021, the Company leased laboratory equipment on a month-to-month basis. In April 2022, the Company terminated the agreement through exercising the option to purchase the leased laboratory equipment under the lease agreement.

Supplemental balance sheet information related to leases as of June 30, 2022 was as follows (in thousands):

Operating leases:
Operating lease right-of-use assets	$	182
Operating lease liability	$	64
Operating lease liability, net of current portion		124
Total operating lease liability	$	188

Operating lease liability and operating lease liability, net of current portion is included in accrued expenses and other current liabilities and other long-term liabilities, respectively, in the accompanying condensed balance sheets.

Supplemental lease expense related to leases was as follows:

Lease Cost (in thousands)	Statements of Operations Classification		Three Months Ended June 30, 2022	Six Months Ended June 30, 2022
Operating lease cost	General and administrative Research and development	$	60	121
Short-term lease cost	General and administrative Research and development		-	53
Total lease expense		$	60	174

Under ASC 840, rent expense was $0.1 million for each of the three and six months ended June 30, 2021, respectively.

Other information related to the operating lease where the Company is the lessee was as follows:

	Six Months Ended June 30, 2022
Weighted-average remaining lease term (in years)	1.75
Weighted-average discount rate	9.0%

Supplemental cash flow information related to the operating lease was as follows (in thousands):

		Six Months Ended June 30, 2022
Cash paid for operating lease liability	$	114

As of June 30, 2022, minimum rental commitments under the operating lease were as follows (in thousands):

Years ending December 31,	Amount
2022 (represents remaining six months in 2022)	$	120
2023		246
2024		63
Total lease payments		429
Less imputed interest		(241)
Present value of lease liability	$	188