Leases

6 Months Ended

Jun. 30, 2024

(10)

Leases

Cullinan has an operating lease for approximately 14,000 square feet of office space in a multi-tenant building in Cambridge, Massachusetts, which commenced in August 2022 and goes through July 2026. The Company also had 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 expired in June 2024. Lease expense consisted of operating lease costs of $0.3 million and $0.6 million for the three and six months ended June 30, 2024, respectively. 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.

The following table summarizes supplemental cash flow information for the six months ended June 30, 2024 and 2023 (in thousands):


	Six Months Ended June 30,
	2024		2023
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	1,024	$	875

The following table summarizes the Company’s future minimum lease payments as of June 30, 2024 (in thousands):


	June 30, 2024
Remainder of 2024	$	714
2025		1,461
2026		871
Total future minimum lease payments		3,046
Less: imputed interest		(312	)
Total lease liabilities at present value	$	2,734

The following table summarizes the weighted-average remaining lease term and discount rate as of June 30, 2024 and December 31, 2023:


	June 30, 2024			December 31, 2023
Weighted-average remaining lease term (in years)		2.1			2.4
Weighted-average discount rate		11.0	%		10.9	%

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.