Leases

3 Months Ended

Mar. 31, 2024

7. Leases

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 lease commenced in April 2021, with a term of seven years and an option to extend the term for an additional five years. The Company delivered a letter of credit of $0.3 million to the landlord, which is included in restricted cash in the accompanying condensed consolidated balance sheets. 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 subleased a portion of its Arsenal Way Lease to a subtenant. The sublease term expired in March 2023.

In August 2023, the Company entered into an operating lease agreement, denominated in Swedish Krona, for office and laboratory space located in Lund, Sweden. The term of the lease commenced in December 2023. The lease has an initial term of three years, with an option to extend the term for an additional three years.

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


Leases	Balance sheet classification	March 31, 2024		December 31, 2023
Assets:
Operating lease assets	Operating lease right-of-use assets	$	4,205	$	4,429
Total lease assets		$	4,205	$	4,429
Liabilities:
Current:
Operating lease liabilities	Operating lease liability, current	$	944	$	877
Noncurrent:
Operating lease liabilities	Operating lease liability, long-term		3,501		3,767
Total lease liabilities		$	4,445	$	4,644

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


	Three Months Ended March 31,
Lease cost	2024		2023
Operating lease cost	$	317	$	286
Variable lease cost		129		95
Sublease income		—		(134	)
Total lease cost	$	446	$	247

As of March 31, 2024 and December 31, 2023, the weighted-average remaining lease term for operating leases was 4.0 years and 4.2 years, respectively, and the weighted-average discount rate was 8.30% and 8.30%, respectively. Cash paid for amounts included in the measurement of lease liabilities was $0.3 million for each of the three months ended March 31, 2024 and 2023.

Future minimum annual lease commitments under the Company’s non-cancelable operating leases as of March 31, 2024 were as follows (in thousands):


Fiscal Year	Amount
2024 (remaining 9 months)	$	946
2025		1,305
2026		1,339
2027		1,200
2028		404
Thereafter		—
Total lease payments		5,194
Less: interest		(749	)
Present value of operating lease liabilities	$	4,445