Leases

12 Months Ended

Dec. 31, 2022

LEASES

The Company has lease agreements for its facilities in Boston, Massachusetts, which is the Company’s principal executive offices; Vienna, Austria, which is the Company’s research and development center; and Waltham, Massachusetts, which the Company has sublet to a third party. The Company previously had a lease agreement for a facility in Cambridge, Massachusetts, which served as its prior corporate headquarters. There are no restrictions or financial covenants associated with any of the lease agreements.

Boston Lease— The Company leases approximately 28,000 square feet of office space in Boston, Massachusetts (“Boston Lease”), which serves as the Company’s headquarters. Base rental payments are approximately $1.0 million annually, plus certain operating expenses. The term of the Boston Lease will continue until November 2026, unless earlier terminated. The Company has the right to sublease the premises, subject to landlord consent and also has the right to renew the Boston Lease for an additional five years at the then prevailing effective market rental rate. The Company is required to maintain a security deposit in the form of a letter of credit for $0.9 million for the benefit of the landlord.

Waltham Lease— The Company leases approximately 6,000 square feet of office space in Waltham, Massachusetts (“Waltham Lease”). The Waltham Lease, as amended, commenced on January 1, 2019, and expires approximately five years from the

commencement date. The base rent is approximately $0.3 million annually. In addition to the base rent, the Company is also responsible for its share of operating expenses, electricity and real estate taxes, which costs are not included in the determination of the leases’ right-of-use assets or lease liabilities. The Company is subleasing the space to a third party for the duration of the lease. The right-of-use asset is being amortized to rent expense over the five year term of the lease.

Vienna Austria Leases— The Company has an operating lease for approximately 1,200 square meters of laboratory and office space in Vienna, Austria (“Vienna Lease”), which commenced in February 2021 for a term of seven years. The annual base rent for the Vienna Lease is approximately $300 thousand.

As the Company’s leases do not provide an implicit rate, the Company estimated the incremental borrowing rate in calculating the present value of the lease payments. The Company utilizes its incremental borrowing rates, which are the rates incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

The components of lease expense for the three years ended December 31, 2022, 2021 and 2020 were as follows (dollars in thousands):


	For the Year Ended December 31,
Lease Cost	2022			2021			2020
Fixed operating lease cost	$	2,080		$	2,087		$	1,290
Short-term lease costs	—			42			157
Total lease expense	$	2,080		$	2,129		$	1,447
Other information
Operating cash flows from operating leases	$	1,354		$	1,257		$	3,820
Leased assets obtained in exchange for new operating lease liabilities	$	—		$	1,343		$	5,090
Weighted-average remaining lease term—operating leases	4.0 years			5.0 years			5.5 years
Weighted-average discount rate—operating leases	11.4		%	11.3		%	11.2		%
Sublease income	$	196		$	196		$	194

Maturities of lease liabilities due under lease agreements that have commenced as of December 31, 2022 are as follows (in thousands):


Maturity of lease liabilities	Operating Leases
2023	$	1,608
2024	1,374
2025	1,402
2026	1,332
2027 and thereafter	325
Total lease payments	6,041
Less: interest	(1,240)
Total operating lease liabilities as of December 31, 2022	$	4,801