Leases

6 Months Ended

Jun. 30, 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 June 30,				For the Six Months Ended June 30,
	2023		2022		2023		2022
Finance lease cost:
Amortization ROU assets	$	—	$	2	$	—	$	3
Total finance lease costs		—	$	2		—	$	3
Operating lease:
Operating lease costs	$	35	$	90	$	71	$	175
Short-term lease costs		—		—		—		8
Total operating lease expense	$	35	$	90	$	71	$	183

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


	As of June 30, 2023

2023 (remaining 6 months)	$	193
2024		392
2025		372
Thereafter		613
Total lease payments		1,569
Less imputed interest		(190	)
Lease liability	$	1,379

The remaining term of the Company’s operating leases was 4.1 years and the discount rate used to measure the present value of the Company’s operating lease liabilities at inception was 6.25%.