The Company has historically entered into lease arrangements for its facilities and certain equipment. As of December 31, 2022, the Company had four operating leases with required future minimum payments. The Company’s leases generally do not include termination or purchase options.

In June 2017, and as further amended in 2021, the Company entered into a lease agreement for office and laboratory space in Montréal, Québec, for a four-year term, ending in July 2021. In August 2021, the lease was extended through July 2025.

In November 2017, and as further amended throughout 2018, 2019, 2020, 2021 and 2022, the Company entered into a lease agreement for office and laboratory space located in Montréal, Québec, for a three-year term ending in October 2020, which was extended through December 2022. The Company entered into a new lease agreement, effective January 2023, which will result in $0.2 million of minimum lease payments over the thirty-two month lease term.

In July 2021, the Company entered into a lease agreement for office space in Cambridge, Massachusetts, for a three-year term ending in December 2024, which commenced in December 2021. The Company has an option for a three year renewal, which has not been recognized in the Company’s right-of-use asset or lease liability.

In November 2019, and as further amended in July 2021, the Company entered into a lease agreement for office and laboratory space for a five-year term located in Montréal, Québec which commenced in September 2020. The Company has an option for a five year renewal, which has not been recognized in the Company’s right-of-use asset or lease liability. As required under the terms of the lease agreement, the Company incurred prepaid rent of $1.0 million prior to commencement of the lease term, with the current portion previously accounted for within prepaid expenses and other current assets and the long-term portion accounted for within other assets. As well, as required under the terms of the amended lease agreement, the Company incurred prepaid rent of $0.4 million prior to commencement of the lease term which was accounted for within prepaid expenses. As of the commencement of the lease term, this prepaid rent has been reclassified to the right-of-use asset.

The following tables contains a summary of the lease costs recognized under ASC 842 and other information pertaining to the Company’s operating leases for the years ended December 31, 2022 and 2021:


	December 31,
	2022		2021
	(in thousands)
Operating Leases
Lease Cost
Operating lease cost	$	2,456	$	2,101
Short-term lease cost		33		25
Variable lease cost		278		163
Total lease cost	$	2,767	$	2,289


	December 31,
	2022			2021
	(in thousands, except as specified otherwise)
Other Operating Lease Information
Operating cash flows for operating leases	$	1,948		$	1,240
Right-of-use assets obtained in exchange for lease obligations	$	86		$	4,690
Weighted-average remaining lease term (in years)		2.43			3.35
Weighted-average discount rate		4.0	%		4.0	%

Variable lease costs for the years ended December 31, 2022 and 2021 include contingent rental usage, common area maintenance and other operating charges. As the Company’s leases do not provide an implicit rate, the Company utilized its incremental borrowing rate to discount lease payments, which reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment.

Future minimum lease payments under the Company’s operating leases as of December 31, 2022 were as follows:


	December 31, 2022
	(in thousands)
Maturity of Lease Liabilities
2023	$	2,342
2024		2,395
2025		957
Total lease payments	$	5,694
Less: interest		(266	)
Total lease liabilities	$	5,428