In April 2018, the Company entered into a lease agreement for laboratory and office space located at 700 N. Main Street, Cambridge, Massachusetts. The lease term, which commenced in April 2018 and was set to expire in April 2020, was extended in March 2020 for an additional one-year period. The lease was cancellable with 30 days’ notice. The Company elected the short-term lease measurement and recognition exemption under ASC 842 for the one-year period extension and therefore did not recognize the lease on the Company’s consolidated balance sheets.

In September 2020, the Company entered into an operating lease agreement, denominated in Swedish Krona, for office space located in Lund, Sweden. The term of the lease commenced in October 2020, is scheduled to expire in September 2023, and will automatically renew for an additional term of three years unless the Company provides written notice of termination six months prior to the termination date. Lease payments are being made on a quarterly basis.

In December 2020, the Company entered into a lease agreement for laboratory and office space located at 480 Arsenal Way, Watertown, Massachusetts (the “Arsenal Way Lease”). The term of the lease commenced in April 2021. The lease has an initial term from the rent commencement date, which is a month after the lease commencement date, of approximately seven years, with an option to extend the term for an additional five years at then-market rental rates. In connection with the execution of the lease agreement, the Company delivered a letter of credit of $0.3 million to the landlord, which is included in restricted cash in the accompanying consolidated balance sheets. The landlord contributed an aggregate of $0.7 million toward the cost of tenant improvements for the premises. Under the terms of the lease, the base rent is $1.0 million, subject to a 3% annual rent increase, plus an allocation of operating expenses and taxes.

In May 2021, the Company entered into an agreement to sublease 6,330 rentable square feet of its Arsenal Way Lease to a subtenant through March 2023. Sublease income is recognized on a straight-line basis over the term of the sublease agreement. Sublease rent income was $0.8 million and $0.4 million for the years ended December 31, 2022 and 2021, respectively, which was allocated and recorded as a reduction to general and administrative expenses and research and development expenses. The Company was not relieved of its primary obligation under the Arsenal Way Lease as a result of the sublease.

The Company recognizes monthly operating lease expense on a straight-line basis over the term of the lease as research and development or general and administrative expenses in the consolidated statements of operations and comprehensive loss. Variable lease expense relates primarily to office lease common area maintenance, insurance, and property taxes, is expensed as incurred, and is excluded from the calculation of the lease liabilities and right-of-use-assets. Variable lease expense for the years ended December 31, 2022 and 2021 was $0.5 million and $0.3 million, respectively.

The following table summarizes the presentation of the Company’s operating leases on its consolidated balance sheets (in thousands):


Leases	Balance sheet classification	December 31, 2022		December 31, 2021
Assets:
Operating lease assets	Operating lease right-of-use assets	$	4,770	$	5,501
Total lease assets		$	4,770	$	5,501
Liabilities:
Current:
Operating lease liabilities	Operating lease liability, current	$	726	$	664
Noncurrent:
Operating lease liabilities	Operating lease liability, long-term		4,235		4,964
Total lease liabilities		$	4,961	$	5,628

The components of lease cost under ASC 842 included within research and development expenses and general and administrative expenses in the Company’s consolidated statements of operations and comprehensive loss were as follows (in thousands):


	For the Year Ended December 31,
Lease cost	2022			2021
Operating lease cost	$	1,143		$	1,144
Short-term lease cost		—			131
Variable lease cost		519			282
Sublease income		(537	)		(291	)
Total lease cost	$	1,125		$	1,266

As of December 31, 2022 and 2021, the weighted-average remaining lease term for operating leases was 5.3 years and 6.3 years, respectively, and the weighted-average discount rate was 7.86% and 7.85%, respectively. Cash paid for amounts included in the measurement of lease liabilities was $1.1 million for the year ended December 31, 2022.

Future minimum annual lease commitments under the Company’s non-cancellable operating leases as of December 31, 2022 were as follows (in thousands):


Year ended December 31,	Amount
2023	$	1,087
2024		1,098
2025		1,131
2026		1,165
2027		1,200
Thereafter		404
Total lease payments		6,085
Less: interest		(1,124	)
Present value of operating lease liabilities	$	4,961