LEASES

12 Months Ended

Dec. 31, 2023

COMPANY AS LESSEE

The Company is party to a non-cancellable operating lease agreement for office space, which expires in 2033. The Company’s operating lease for this office space includes fixed rent payments and variable lease payments, which are primarily related to common area maintenance and utility charges. The Company elected not to separate lease and non-lease components, and as such, all amounts paid under the lease are classified as either fixed or variable lease payments. Fixed leases payments were included in the calculation of the right-of-use ("ROU") asset and leases liabilities, with variable lease payments being recognized as lease expense as incurred. The Company has determined that no renewal clauses are reasonably certain of being exercised and therefore has not included any renewal periods within the lease term for this lease.

As of December 31, 2023, and 2022, the Company held operating lease ROU assets of $3.3 million and 3.7 million, respectively; current lease liabilities of $0.4 million and 0.3 million, respectively; and non-current lease liabilities of $4.3 million and $4.6 million, respectively. In measuring operating lease liabilities, the Company used a weighted average discount rate of 4.4% as of December 31, 2023. The weighted average remaining lease term as of December 31, 2023, was 9.2 years years.

Components of Lease Cost

For the years ended December 31, 2023, and 2022, the Company’s total operating lease cost was comprised of the following:


	Year Ended December 31,
(in thousands)	2023		2022

Operating lease cost	$	481	$	484
Short-term lease cost	—		42
Variable lease cost	52		51
Total lease cost	$	533	$	577

* Short term lease cost includes a refund received by the Company during the year ended December 31, 2023, for office space it previously occupied.

Maturity of Lease Liabilities

As of December 31, 2023, maturities of the Company's operating lease liabilities, which do not include short-term leases and variable lease payments, are as follows:


	(in thousands)

2024	$	557
2025	571
2026	585
2027	600
2028	615
Thereafter	2,731
Total Lease Payments	5,659
Less: imputed interest	(1,011)
Present value of total lease liabilities	$	4,648

COMPANY AS LESSOR

The Company sublets a portion of its office space to a related party and accounts for the arrangement as an operating lease. Related party sublease rental income is recognized on a straight-line basis and is included in Interest and other (expense) income in the accompanying consolidated statements of operations. For the year ended December 31, 2023, operating lease income from the Company’s sublet was immaterial. As of December 31, 2023, total remaining future minimum lease payments receivable on the Company’s operating lease was $0.2 million.