The Company leases its office facilities under non-cancelable operating leases that expire at various dates through October 2026. The Company entered into an office space lease at 121 First Street in Cambridge, Massachusetts on January 10, 2022, for 36 months, with an option to extend the lease for 3 years. Because the Company was not reasonably certain to exercise the option to extend the lease at inception, the option to extend was not considered in determining the lease term. The Company initially recognized a right-of-use asset of $5.0 million and a lease liability of $5.0 million upon commencement of the lease.

Components of lease expense required by ASC 842 are presented below for the year ended December 31, 2022:


	Year ended December 31,
	2022
	(in thousands)
Lease cost
Operating lease cost	$	2,136
Total lease cost	$	2,136

Lease liabilities are measured by calculating the present value of remaining lease payments under the lease arrangement. Since the rates implicit in our leases are not readily determinable, the Company uses estimated incremental borrowing rates in determining the discount rate used to calculate the present value of remaining lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments over a similar term equal to the lease term in a similar economic environment. The incremental borrowing rate is based on the information available at commencement date. As the Company has no recent external borrowings, the incremental borrowing is a hypothetical rate based on our understanding of what our credit rating would be and adjusted to reflect a collateralized borrowing.

The Company’s leases contain renewal options that can extend the lease for additional years. Because the Company is not reasonably certain to exercise these renewal options, they are not considered in determining the lease terms, and associated potential additional payments are excluded from lease payments. The Company has elected to account for each lease component and its associated non-lease components as a single lease component and has allocated all of the contract consideration across lease components only. The Company has existing net leases in which the non-lease components (e.g., common area maintenance) are paid separately from rent based on actual costs incurred and therefore are not included in the operating lease right-of-use assets and lease liabilities and are reflected as an expense in the period incurred.

The following table summarizes the presentation in the Company’s consolidated balance sheet of its operating leases (in thousands):


	As of December 31, 2022
Assets
Operating lease right-of-use assets	$	5,524

Liabilities
Operating lease right-of-use liabilities, current	$	2,040
Operating lease right-of-use liabilities, net of current portion		4,237
Total operating lease liabilities	$	6,277

During the year ended December 31, 2022, the Company made cash payments of $1.4 million for operating leases. Future minimum lease payments under non-cancelable leases as of December 31, 2022, were as detailed below (in thousands):


	As of December 31, 2022
2023	$	2,417
2024		2,478
2025		1,586
2026		476
2027		—
Total undiscounted lease payments		6,957
Less: imputed interest		(680	)
Total operating lease liabilities	$	6,277

As of December 31, 2022, the weighted average remaining lease term was 2.9 years and the weighted average incremental borrowing rate used to determine the operating lease right-of-use assets was 7.3%.

Future minimum lease payments under non-cancelable leases as of December 31, 2021, were as detailed below (in thousands):


	As of December 31, 2021
2022	$	532
2023		541
2024		555
2025		563
2026		476
Total operating lease liabilities	$	2,667