Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

4. Leases

In January 2019, the Company amended the lease for its corporate headquarters and primary research facility in Marlborough, Massachusetts. The lease is for a total of 7,581 square feet of office and laboratory space and will expire on March 31, 2024. The lease contains an option to terminate after two or three years by providing advance written notice of termination pursuant to the terms of the agreement. The exercise of this option was not determined to be reasonably certain and thus was not included in the lease liability on the Company’s balance sheet. The Company did not exercise its option to terminate in either the second or third year of the lease, and the option to terminate has expired. Additionally, the lease agreement did not contain information to determine the borrowing rate implicit in the lease. As such, the Company calculated its incremental borrowing rate based on what the Company would have to pay to borrow on a collateralized basis over the lease term for an amount equal to the remaining lease payments, taking into consideration such assumptions as, but not limited to, the U.S. treasury yield rate and borrowing rates from a creditworthy financial institution using the above lease factors.

The lease for the Company’s corporate headquarters represents all of our significant lease obligations. The amounts reported in the condensed consolidated balance sheets for the operating lease in which the Company is the lessee and other supplemental balance sheet information is set forth as follows, in thousands, except the lease term (number of years) and discount rate: 

	March 31, 2023		December 31, 2022
Assets
Right of use asset	$	130	$	161
Liabilities
Lease liability, current		138		135
Lease liability, non-current		–		35
Total lease liability	$	138	$	170
Lease Term and Discount Rate
Weighted average remaining lease term		1.00		1.25
Weighted average discount rate		4.70%		4.70%

Operating lease costs included in operating expense were $33,000 for the three months ended March 31, 2023 and 2022, respectively.

Cash paid for the amounts included in the measurement of the operating lease liability on the Company’s condensed consolidated balance sheets and included within changes in the lease liability in the operating activities of the Company’s condensed consolidated statements of cash flows was $34,000 and $33,000 for the three months ended March 31, 2023 and 2022, respectively.

Future lease payments for the Company’s non-cancellable operating lease and a reconciliation to the carrying amount of the operating lease liability presented in the condensed consolidated balance sheet as of March 31, 2023 is as follows, in thousands: 

2023 (remaining)	$	106
2024		35
Total lease payments		141
Less: Imputed interest		(3	)
Total operating lease liability	$	138