Leases

3 Months Ended

Mar. 31, 2023

LEASES

The Company has lease agreements for its facilities in Boston, Massachusetts, which is the Company’s principal executive office; Vienna, Austria, which is the Company’s research and development center; and Waltham, Massachusetts, which the Company has sublet to a third party. There are no restrictions or financial covenants associated with any of the lease agreements.

•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 7 years. The annual base rent for the Vienna Lease is approximately $285 thousand.

•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 $1.1 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 $0.6 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 on December 31, 2023. 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.

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 and amount equal to the lease payments in a similar economic environment.

The components of lease expense for the three months ended March 31, 2023 and 2022 were as follows:


(dollars in thousands)	Three Months Ended March 31,
Lease Cost	2023			2022
Fixed operating lease cost	$	522		$	530

Total lease expense	$	522		$	530
Other information

Operating cash flows from operating leases	$	346		$	342
Sublease income	$	49		$	49
Weighted-average remaining lease term—operating leases	3.8 years
Weighted-average discount rate—operating leases	11.3		%

Maturities of lease liabilities due under lease agreements that have commenced as of March 31, 2023 are as follows (in thousands)


Maturity of lease liabilities	Operating Leases
2023 (remainder of the year)	$	1,210
2024	1,378
2025	1,406
2026	1,337
2027	285
Thereafter	48
Total lease payments	5,664
Less: interest	(1,112)
Total operating lease liabilities as of March 31, 2023	$	4,552