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Leases

9 Months Ended

Sep. 30, 2022

Note 7. Leases

The Company’s operating leases consist primarily of leases for office and plant spaces. Certain of the Company’s operating leases include escalating rental payments, some of which include the option to extend the lease term for up to 5 years, and some include options to terminate the lease at certain times within the lease term. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company’s total operating lease cost was $0.6 million and $1.7 million for the three and nine months ended September 30, 2022, respectively. For the three and nine months ended September 30, 2021, total rental expense was $0.5 million and $1.2 million, respectively. Cash paid for amounts included in the measurement of lease liabilities was $2.0 million for the nine months ended September 30, 2022.

The following table summarizes the future minimum undiscounted lease payments under operating leases as of September 30, 2022:


Years Ending December 31,	(in thousands)
2022 (remaining)	$	313
2023		2,627
2024		2,673
2025		2,731
2026		2,044
Thereafter		4,516
Total future minimum lease payments		14,904
Less: imputed interest		(3,022)
Total future minimum lease payments	$	11,882

As of September 30, 2022, the weighted average remaining lease term for operating leases was 6.6 years and the weighted average discount rate used to determine the operating lease liability was 6.2%.

In October 2022, the Company entered into an amendment to the operating lease agreement for its Boston facility to add additional space. Pursuant to the amendment, the landlord has agreed to construct an addition to the existing facility for such additional space, which the Company anticipates will be completed in the third quarter of 2023, triggering the commencement of the amended lease. The additional space will consist of approximately 5,000 square feet and the total base rent payments for the addition through the expected 8 year term will be approximately $1.5 million.