Leases

12 Months Ended

Dec. 31, 2022

LEASES

The Company has been subleasing space in Carmel, Indiana since March 1, 2020. The Company executed a new sublease for this space that was effective on February 1, 2021 and expires on August 30, 2023. The sublease does not provide the Company with any renewal options. The Company allows others to sublease a portion of the space from the Company for less than a one-year period. The Company recognizes sublease income in other income (expense) on its statements of operations and comprehensive loss. The Company expects to recognize approximately $9,000 in sublease income during 2023.

On September 28, 2022, the Company entered into a lease for office space in Charlottesville, Virginia with a lease term of 15 months beginning October 1, 2022. On December 1, 2022, the Company entered into a lease for additional office space in the same building in Charlottesville, Virginia with a lease term of 12 months beginning on January 1, 2023. There is no

automatic renewal for either of the Charlottesville, Virginia leases, but any holdover tenancy shall be on a month-to-month basis thereafter.

The following table summarizes quantitative information about the Company’s operating leases for the year ended December 31, 2022 (in thousands):



Operating leases
Operating lease cost	$	154
Less: sublease income	(43)
Operating lease expense	111
Short-term lease rent expense	13
Total rent expense	$	124

Supplemental information related to leases for the year ended December 31, 2022 was as follows (dollar amounts in thousands):


Operating cash flows from operating leases			$154
Right-of-use assets obtained in exchange for operating lease liabilities			$242
Weighted-average remaining lease term – operating leases (in years)			0.7
Weighted-average discount rate – operating leases			10.0%

As of December 31, 2022, the present value of maturities of the Company’s operating lease liabilities were as follows (in thousands):


Year ended December 31, 2023	$	109
Less: present value discount	(4)
Operating lease liabilities	$	105

Prior to the adoption of ASC 842, and for the year ended December 31, 2021, the Company recognized rent expense on a straight-line basis over the lease period and recorded deferred rent expense for rent expense incurred but not yet paid. During the year ended December 31, 2021, the Company recognized total rent expense of approximately $147,000, and recognized sublease income of approximately $66,000.