Note 12. Leases

The Company entered into an agreement to lease approximately 11,040 square feet of space on the 12th floor of the building located at 555 Long Wharf Drive, New Haven, Connecticut that commenced February 22, 2019, or the Commencement Date. The premises were occupied in March 2019.

The term of the 12th floor lease continues from the Commencement Date through the last day of the calendar month immediately following the seventh anniversary of the Commencement Date.

The Company’s improvement costs were approximately $642 and are being amortized over the life of the lease.

Maturities of the operating lease liability are as follows:


Year ending December 31,	Amount
2020	$	208
2021		196
2022		219
2023		225
2024		230
Thereafter		276
Total lease payments		1,354
Less imputed interest		(161)
Total lease liability		1,193
Less current portion		(164)
Operating lease liability	$	1,029

The current portion of the Company’s operating lease liability of $164 as of December 31, 2019 is included in other current liabilities on the balance sheet.

The Company recorded lease expense of $155 related to its operating lease right-of-use asset for the year ended December 31, 2019.

The Company has an option to renew the lease for one additional five-year term at 95% of the then-prevailing market rates but not less than the rental rate at the end of the initial lease term.