Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

11. Commitments and Contingencies

Operating Leases

The Company leases office facilities and equipment under long-term, non-cancelable operating lease agreements. The leases expire at various dates through 2025 and do not include renewal options.

Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements. The leases generally also include real estate taxes and common area maintenance charges in the annual rental payments.

Pursuant to the terms of its lease agreement for the Company’s headquarters, the Company obtained a letter of credit in the amount of approximately $182,000 as security on the lease obligation. The letter of credit is listed as restricted cash on the Company’s consolidated balance sheets.

Short-term leases are leases having a term of twelve months or less. The Company recognizes short-term leases on a straight-line basis and does not record a related lease asset or liability for such leases.

The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of June 30, 2022 (in thousands):


Year ended:
December 31, 2022	$	286
December 31, 2023		596
December 31, 2024		9
December 31, 2025		1
Total minimum lease payments		892
Less imputed interest		(68	)
Total	$	824


	Six Months Ended June 30,
	2021			2022
Lease cost:
Operating lease cost	$	244		$	250
Short-term lease cost		-			18
Sublease income		(26	)		(26	)
Total lease cost	$	218		$	242
Other information
Cash paid for amounts included in the measurement of lease liabilities	$	262		$	264
Operating cash flows from operating leases	$	(28	)	$	(26	)
Weighted-average remaining lease term - operating leases	1.4 years			1.4 years
Weighted-average discount rate - operating leases		10.1	%		10.1	%

Research and Development Agreements

As part of the Company’s research and development efforts, the Company enters into research and development agreements with certain companies. These agreements contain varying terms and provisions which include fees and milestones to be paid by the Company. Some of these agreements also contain provisions which require the Company to make payments for exclusivity in the development of products in the area of loop diuretics.