Leases

12 Months Ended

Dec. 31, 2022

(13)

Leases

The Company has an operating lease for approximately 8,000 square feet of office space in a multi-tenant building in Cambridge, Massachusetts, which commenced in February 2018 and goes through June 2024 (the "Suite 520 Lease"). In August 2022, the Company entered into an additional operating lease (the "Suite 1350 Lease") for approximately 14,000 square feet of office space in a multi-tenant building in Cambridge, Massachusetts through July 2026. Lease expense consisted of operating lease costs of $1.1 million for 2022. Rent expense under the prior lease accounting standard was $0.6 million for 2021.

The following table summarizes supplemental cash flow information for 2022 (in thousands):


	Year Ended December 31, 2022
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases(1)	$	260
ROU asset obtained in exchange for an operating lease liability	$	4,931

(1)

Operating cash flows from operating leases includes cash inflow of $0.3 million reimbursed by the lessor for improvements made to the newly leased office space pursuant to the terms of the Suite 1350 lease.

The following table summarizes the weighted-average lease term and discount rate as of December 31, 2022:


	December 31, 2022
Weighted-average remaining lease term (in years)	3.2
Weighted-average discount rate		10.8	%

As the Company’s operating leases did not provide an implicit rate, the Company used its incremental borrowing rate based on the information available in determining the present value of lease payments. The Company’s incremental borrowing rate was based on the term of the lease, the economic environment and reflects the rate the Company would have had to pay to borrow on a secured basis.

The following table summarizes the Company’s future minimum lease payments under the new lease accounting standard as of December 31, 2022 (in thousands):


	December 31, 2022
2023	$	1,881
2024		1,738
2025		1,461
2026		872
Total future minimum lease payments		5,952
Less: imputed interest		(941	)
Total lease liabilities at present value	$	5,011

The following table summarizes the Company’s future minimum lease payments under the prior lease accounting standard as of December 31, 2021 (in thousands):


Years Ending December 31,	(in thousands)
2023	$	608
2024		618
2025		313
	$	1,539

Sublease Agreement

In September 2022, the Company entered into a sublease agreement through May 2024 for the Suite 520 Lease. For 2022, the Company recorded sublease income of $0.1 million within other income (expense), net. The Company expects to receive sublease payments of approximately $0.6 million in 2023 and $0.3 million in 2024. These expected sublease payments are equal to the fixed payments that the Company is required to make under its lease.