Leases

9 Months Ended

Sep. 30, 2022

Leases

Leases

8. Leases

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

Operating leases:
Operating lease right-of-use assets	$	171
Operating lease liability	$	86
Operating lease liability, net of current portion		93
Total operating lease liability	$	179

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.

Operating lease expense recorded as research and development and general and administrative expenses in the condensed statements of operations is as follows (in thousands):

Operating lease cost (in thousands)		Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022
General and administrative	$	40	$	57
Research and development		20		124
Total lease expense	$	60	$	181

Short term lease expense recorded as research and development expense in the condensed statements of operations for the three and nine months ended September 30, 2022 was $0.0 and $0.1 million, respectively.

Under ASC 840, lease expense was $0.1 million and $0.2 million for the three and nine months ended September 30, 2021, respectively.

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

	Nine Months Ended September 30, 2022
Weighted-average remaining lease term (in years)	1.50
Weighted-average discount rate	9.0%

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

		Nine Months Ended September 30, 2022
Cash paid for operating lease liability	$	173

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

Years ending December 31,	Amount
2022 (represents remaining three months in 2022)	$	61
2023		246
2024		63
Total lease payments		370
Less imputed interest		(191)
Present value of lease liability	$	179