Leases

3 Months Ended

Mar. 31, 2023

In August 2019, the Company leased office space for its headquarters location under an operating lease. This lease commenced in November 2019 after the completion of certain tenant improvements made by the lessor. The lease includes an option to renew for a five-year term as well as an option to terminate after three years, neither of which have been recognized as part of its related right of use assets or lease liabilities as their election is not considered reasonably certain. In November 2022, the Company entered into a second amendment to the lease, (i) to reduce the square footage and (ii) to extend the lease term, which constituted a modification event under ASC 842 and, the lease classification for the asset remains as an operating lease. As a result of the remeasurement of the associated lease liabilities, the Company recognized additional right of use assets and corresponding lease liabilities of $0.1 million. Further, the second amendment to the lease does not include any material residual value guarantee or restrictive covenants.

At each of March 31, 2023 and December 31, 2022, the weighted average incremental borrowing rate for the operating leases held by the Company was 9.5%. At March 31, 2023 and December 31, 2022, the weighted average remaining lease terms for the operating leases held by the Company were 2.7 years and 2.9 years, respectively.

Maturities of lease liabilities for the Company’s operating leases as of March 31, 2023, were as follows (in thousands):


2023 (remaining nine months)	$	145
2024	194
2025	177
2026	—
2027	—
Thereafter	—
Total lease payments	516
Less: imputed interest	(62)
Present value of lease liabilities	$	454

Operating lease cost and the related operating cash flows for the three months ended March 31, 2023 and 2022 were immaterial amounts.