LEASES

3 Months Ended

Mar. 31, 2024

COMPANY AS LESSEE

The Company is a 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. 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 March 31, 2024, the Company held operating lease ROU assets of $3.3 million, current lease liabilities of $0.4 million, included within accrued expenses and other liabilities on the consolidated balance sheets, and non-current lease liabilities of $4.2 million. In measuring operating lease liabilities, the Company used a weighted average discount rate of 4.4% in existence as of the January 1, 2022, ASU 2016-02 adoption date. The weighted average remaining lease term as of March 31, 2024, was 8.92 years.

Components of Lease Cost

For the three months ended March 31, 2024, the Company’s total operating lease cost was comprised of the following:


	Three Months Ended March 31,
(In thousands)	2024		2023

Operating lease cost	$	119	$	121

Variable lease cost	12		13
Total lease cost	$	131	$	134

Maturity of Lease Liabilities

As of March 31, 2024, maturities of the Company’s operating lease liabilities, which do not include short-term leases and variable lease payments, were as follows:


	(In thousands)

Nine remaining months of 2024	$	419
2025	571
2026	585
2027	600
2028	615
Thereafter	2,731
Total lease payments	$	5,521
Less: imputed interest	(961)
Present value of total lease liabilities	$	4,560

COMPANY AS LESSOR

The Company subleases 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 income (expense) in the accompanying consolidated statements of operations. For the three months ended March 31, 2024, operating lease income from the Company’s sublet was less than $0.1 million. As of March 31, 2024, total remaining future minimum lease payments receivable on the Company’s operating lease were $0.2 million.