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Right-of-Use Assets and Liabilities
 6 Months Ended
Jun. 30, 2022
Leases [Abstract]  
Right-of-Use Assets and Liabilities Right-of-Use Assets and Liabilities
The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the condensed consolidated balance sheets.
ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The incremental borrowing rate ranges from 3.0% - 4.1%. Lease expense is recognized on a straight-line basis over the lease term. Some of the Company’s leases include options to extend or terminate the lease. The Company includes these options in the recognition of the Company’s ROU assets and lease liabilities when it is reasonably certain that the Company will exercise such options.
In May 2021, the Company entered into a lease for approximately 160,000 square feet of laboratory and office space to be occupied in 2024. In connection with the signing of the lease, and at the Company’s election to increase the landlord’s contribution to the tenant improvement allowance, the Company issued a letter of credit for $4.5 million, collateralized by a certificate of deposit in the same amount, which is presented as restricted cash at June 30, 2022. Once occupied, the base rent will range from $7.7 million to $8.8 million annually over a ten-year lease term.
The Company has operating leases for its corporate office, laboratories and certain equipment, which expire no later than January 31, 2026. The leases have a weighted average remaining term of 2.6 years.
The components of lease expense were as follows:
 Three Months Ended
June 30,		Six Months Ended
June 30,
(dollars in millions)2022202120222021
Operating lease cost$0.5 $0.3 $1.1 $0.7 
Supplemental cash flow information related to leases was as follows:
Six Months Ended
June 30,
(dollars in millions)20222021
Cash paid for amounts included in the measurement of lease liabilities:  
Operating cash flows from operating leases$1.0 $0.6 
Supplemental non-cash information:
Right-of-use assets obtained in exchange for new lease obligations$2.4 $3.2 
Maturities of lease liabilities for operating leases as of June 30, 2022, are as follows:
(dollars in millions)
Remainder of 2022$0.8 
20232.1 
20242.1 
20250.5 
2026— 
Total lease payments5.5 
Less: imputed interest(0.2)
Total$5.3