LEASES

12 Months Ended

Dec. 31, 2023

Office leases

On September 11, 2023, the Company entered into a lease for office space in Newton, Massachusetts, with a lease term of approximately 38 months beginning October 20, 2023, and which expires on December 31, 2026.

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 the lease agreements provide that any holdover tenancy shall be on a month-to-month basis thereafter.

The Company had 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 expired on August 30, 2023, at which time the Company ceased to occupy this space. The Company allowed 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 expense, net in the statements of operations and comprehensive Loss.

Computer Equipment Lease

In September 2023, the Company entered into an agreement with a vendor that included the lease of certain computer equipment for its planned Phase 2 clinical trial with an October 2023 lease commencement date. In January 2024, the Company paid $0.8 million for the computer equipment which will be returned to the vendor at the completion of the vendor’s services under the agreement. Upon the lease inception, the Company recorded non-cash expense of $0.7 million in research and development expense in the statement of operations and comprehensive loss for the right-of-use assets related to the computer equipment lease as the equipment is being used for R&D and does not have an alternative future use.

The following table summarizes quantitative information about the Company’s leases (in thousands):


	Year Ended December 31,
	2023		2022
Finance lease
Interest lease cost	$	17	$	—
Finance lease expense	17		—
Operating leases
Operating lease cost	133		154
Less: sublease income	(5)		(43)
Operating lease expense	128		111
Short-term lease rent expense	15		13
Total rent expense	$	160	$	124

Supplemental information related to leases was as follows (dollar amounts in thousands):


	Year Ended December 31,
	2023			2022
Operating cash flows from finance lease	$	17		$	—
Operating cash flows from operating leases	$	121		$	154
Right-of-use assets obtained in exchange for finance lease liabilities	$	739		$	—
Right-of-use assets obtained in exchange for operating lease liabilities	$	399		$	242
Noncash research and development expense for the right-of-use assets (finance lease)	$	739		—
Weighted-average remaining lease term – finance leases (in years)	3.8			—
Weighted-average remaining lease term – operating leases (in years)	3.0			0.7
Weighted-average discount rate – finance leases	9.7		%	—
Weighted-average discount rate – operating leases	9.7		%	10.0		%

As of December 31, 2023, the present value of maturities of the Company’s finance lease liabilities were as follows (in thousands):


Year ended December 31, 2024	$	763
Total	763
Less: present value discount	(7)
Finance lease liability	$	756

As of December 31, 2023, the present value of maturities of the Company’s operating lease liabilities were as follows (in thousands):


Year ended December 31, 2024	$	143
Year ended December 31, 2025	155
Year ended December 31, 2026	158
Total	456
Less: present value discount	(63)
Operating lease liability	$	393