OPERATING LEASE

12 Months Ended

Dec. 31, 2023

As of December 31, 2023, the Company had an operating lease for its principal executive office in Bridgewater, New Jersey.

On March 13, 2019, the Company signed an amendment to the original lease agreement for its principal executive office in Bridgewater, New Jersey (the “Lease Amendment”). The Lease Amendment included an extension of the lease period of the 10,000 square feet previously leased under the original agreement (the “Original Space”) and an addition of 4,639 square feet (the “Additional Space”). The Company entered the Additional Space following a period of preparation by the lessor completed during September 2019 (the “Commencement Date”). The term included in the Lease Amendment expired on September 30, 2022.

Pursuant to the Lease Amendment, the Company recognized an additional right of use asset and liability in the amount of $0.7 million. The Additional Space was considered a new lease agreement and was recognized as a right of use asset and liability, in the amount of $0.3 million, on the Commencement Date. The lease liability matured on September 30, 2022.

In November 2022, the Company transitioned to a smaller corporate headquarters and signed a Sublease Agreement (the “Sublease”) to sublease approximately 5,755 square feet of office space (the “Leased Premises”) in Bridgewater, New Jersey through September 30, 2023. In addition, the Company signed a Lease Agreement (the “Master Lease”) to lease the Leased Premises following the termination of the Sublease through September 30, 2025. The Company recorded a right of use asset of $0.2 million and liability of $0.3 million at the commencement date of the Master Lease on October 1, 2023.

The Company's lease agreement for its former office space in Israel was a one year lease that expired in December 2022. Given the short-term nature of the lease term, the Company did not recognize a right-of-use asset or liability.

The components of lease expense are as follows:


(in thousands)	Year Ended December 31, 2023		Year Ended December 31, 2022

Operating lease expense	$	32	$	271
Short-term lease expense	$	86	$	217
Variable lease expense	$	(16)	$	69
Total lease expense	$	102	$	557

Variable lease expense primarily consists of utility and other common area maintenance ("CAM") charges. For the year ended December 31, 2023 the variable lease expenses included a reversal of expense related to CAM charges. Lease expense is included within general and administrative expenses on the consolidated statements of operations.

Operating cash flows for amounts included in the measurement of lease liabilities are as follows:


	Year Ended December 31, 2023
Operating leases	$	25

Supplemental information related to leases are as follows:


	December 31, 2023
Operating lease right-of-use assets	$	207
Operating lease liabilities	$	214
Weighted average remaining lease term	1.75
Weighted average discount rate	8.00		%

There were no right-of-use assets or lease liabilities as of December 31, 2022.

Maturities of lease liabilities are as follows:


2024	$	126
2025	102
Total lease payments	228
Less imputed interest	(14)
Total lease liability	$	214
Current operating lease liabilities	115
Non-current operating lease liabilities	99
Total lease liability	$	214