Leases

9 Months Ended

Sep. 30, 2023

The Company entered into a lease for office space in New Haven, Connecticut, effective March 1, 2013, and entered into a First Amendment (the “First Amendment”) to such lease on December 5, 2017 and a Second Amendment (the “Second Amendment”) to such lease on November 21, 2022 (collectively, the “Office Space Lease”). The leased space approximated 5,600 square feet and, prior to the Second Amendment, the Office Space Lease had a term of 60 months expiring on February 28, 2023. Under the First Amendment, the Company was required to make monthly payments ranging from approximately $10 to $12 through February 1, 2023 and received two designated months of free rent. As a result of the Company entering into the Second Amendment, the leased space increased to 12,500 square feet effective in March 2023 and the term for the Office Space Lease was extended for an additional 60 months from its prior termination date, until February 28, 2028. The Second Amendment requires monthly payments ranging from approximately $23 to $32 effective in March 2023 through February 2028. The first year of payments are based on 10,500 square feet of occupied space, the second year of payments are based on 11,500 square feet of occupied space and the remaining lease payments are based on 12,500 square feet of occupied space.

In December 2022, the Company entered into a 24-month lease for the financing of the furniture installed in the Company’s new office space. The furniture lease requires monthly payments of approximately $11 starting in March 2023. The Company also entered into an immaterial office equipment lease during 2022 that has a term of 36 months.

The following table presents the Company’s lease-related assets and liabilities as of September 30, 2023 and December 31, 2022:


	Classification on the Condensed Consolidated Balance Sheet	September 30, 2023		December 31, 2022
Assets:
Operating lease assets	Operating lease right-of-use assets	$	1,190	$	24
Finance lease assets	Finance lease right-of-use assets		218		—
Total lease assets		$	1,408	$	24
Liabilities:
Current
Operating lease liabilities	Operating lease liabilities, current portion	$	171	$	25
Finance lease liabilities	Finance lease liabilities, current portion		121		—
Non-current
Operating lease liabilities	Operating lease liabilities, non-current portion		1,051		2
Finance lease liabilities	Finance lease liabilities, non-current portion		62		—
Total lease liabilities		$	1,405	$	27

The following table presents information related to the Company’s lease expense for the three and nine months ended September 30, 2023 and 2022:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Operating lease expense	$	85	$	31	$	202	$	92
Finance lease expense		12		—		24		—
Total lease expense	$	97	$	31	$	226	$	92

Future minimum lease payments from September 30, 2023 until the expiration of the leases are as follows:


	Operating Leases			Finance Leases
2023	$	69		$	32
2024		303			126
2025		349			32
2026		368			—
2027		377			—
Thereafter		95			—
Total minimum lease payments		1,561			190
Less: Amount of lease payments representing interest		(339	)		(7	)
Present value of future minimum lease payments	$	1,222		$	183

The following table presents certain information related to the lease terms and discount rates for the Company’s leases as of September 30, 2023 and December 31, 2022:


	September 30, 2023	December 31, 2022
Weighted average remaining lease term:
Operating leases	4.5 years	0.3 years
Finance leases	1.5 years	not applicable

Weighted average discount rate:
Operating leases	11.00%	13.00%
Finance leases	4.37%	not applicable

The following table presents supplemental cash flow information related to the Company’s leases for the three and nine months ended September 30, 2023 and 2022:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows relating to operating leases	$	69	$	36	$	162	$	95
Finance lease payments	$	32	$	—	$	63	$	—
Supplemental non-cash information:
Right-of-use assets obtained in exchange for new operating lease liabilities	$	—	$	4	$	1,289	$	4
Right-of-use assets obtained in exchange for new finance lease liabilities	$	—	$	—	$	242	$	—