Leases

3 Months Ended

Mar. 31, 2023

Note 5—Leases

The Company leases office space in West Chester, Pennsylvania that serves as the Company’s headquarters under an agreement classified as an operating lease. The initial term will expire on September 1, 2027. Base rent over the initial term is approximately $2.4 million, and the Company is also responsible for its share of the landlord’s operating expense.

The Company leases office space in Scotch Plains, New Jersey under an agreement classified as an operating lease, which commenced on May 1, 2022 and expires on April 30, 2025. Base rent over the initial term is approximately $104,000.

The components of lease expense are as follows (in thousands):


	For the Three Months Ended March 31,
	2023		2022
Finance lease cost:
Amortization ROU assets	$	—	$	2
Total finance lease costs		—	$	2
Operating lease:
Operating lease costs	$	86	$	85
Short-term lease costs		—		8
Total operating lease expense	$	86	$	93

Maturities of the Company’s operating and finance leases, excluding short-term leases, as of March 31, 2023 are as follows (in thousands):


	Three months ended
	March 31, 2023
	Operating
2023 (remaining 9 months)	$	288
2024		392
2025		372
Thereafter		613
Total lease payments		1,665
Less imputed interest		(213	)
Lease liability	$	1,452

The remaining term of the Company’s operating leases was 4.3 years and the discount rate used to measure the present value of the Company’s operating lease liabilities at inception was 6.25%.