Leases

6 Months Ended

Jun. 30, 2022

Leases

Leases

10. Leases

The Company is a lessee under leases of offices, lab spaces, and certain office equipment. Some of the Company’s leases include options to extend the lease, and these options are included in the lease term to the extent they are reasonably certain to be exercised.

On January 28, 2022, the Company executed a lease for 85,800 square feet of office and laboratory space in Bedford, Massachusetts. The lease commencement date was February 1, 2022, when the Company gained access to the underlying facilities. The Company has negotiated a tenant improvement allowance with the landlord which will offset a portion of the Company’s construction costs. The Company has assessed whether improvements made to the premises are landlord-owned or company-owned, with payments made by the Company for landlord-owned assets accounted for as lease incentives. The initial term of the lease’s payment schedule is eight years and nine months beginning on May 1, 2022. The Company has the option to extend the lease for two additional five-year periods.

The components of lease expense was as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Operating leases	2022		2021		2022		2021
Lease costs (1)
Operating lease costs	$	1,569	$	663	$	2,232	$	1,334
Total lease cost	$	1,569	$	663	$	2,232	$	1,334

(1) Short-term lease costs and variable lease costs incurred by the Company for the three and six months ended June 30, 2022 were not material.

Supplemental balance sheet and cash flow information was as follows (amounts in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Supplemental balance sheet information:
Weighted average remaining lease term		8.5	years		9.6	years		8.5	years		9.6	years
Weighted average discount rate		7.2%			9.7%			7.2%			9.7%
Supplemental cash flow information:
Operating cash flows used for operating leases	$	532		$	837		$	1,394		$	1,683

Future minimum commitments under the Company’s operating leases in effect as of June 30, 2022 were as follows (in thousands):

Twelve months ending June 30,
2023	$	5,918
2024		6,860
2025		7,046
2026		7,271
2027		7,502
Thereafter		27,520
Total lease payments		62,117
Less: imputed interest		16,286
Total operating lease liabilities	$	45,831