Leases

6 Months Ended

Jun. 30, 2023

(12)

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, Cullinan entered into an additional operating 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 $0.4 million and $0.9 million for the three and six months ended June 30, 2023, respectively. Lease expense consisted of operating lease costs of $0.1 million and $0.3 million for the three and six months ended June 30, 2022, respectively.

The following table summarizes supplemental cash flow information for the six months ended June 30, 2023 and 2022:


	Six Months Ended June 30,
	2023		2022
	(in thousands)
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	875	$	303
Right-of-use asset obtained in exchange for an operating lease liability	$	—	$	1,311

The following table summarizes the Company’s future minimum lease payments and reconciliation of lease liabilities as of June 30, 2023:


	June 30, 2023
	(in thousands)
Remainder of 2023	$	1,006
2024		1,738
2025		1,461
2026		872
Total future minimum lease payments		5,077
Less: imputed interest		(691	)
Total lease liabilities at present value	$	4,386

The following table summarizes the weighted-average remaining lease term and discount rate as of June 30, 2023 and December 31, 2022:


	June 30, 2023			December 31, 2022
Weighted-average remaining lease term (in years)		2.8			3.2
Weighted-average discount rate		10.8	%		10.8	%

As Cullinan’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. Cullinan’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.

Sublease Agreement

In September 2022, Cullinan entered into a sublease agreement through May 2024 for the Suite 520 Lease. For the three and six months ended June 30, 2023, the Company recorded sublease income of $0.1 million and $0.3 million, respectively, within other income (expense), net.