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Commitments and Contingencies | 3 Months Ended
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Mar. 31, 2022
Commitments and Contingencies. |
Commitments and Contingencies | Note 12 – Commitments and Contingencies Operating Leases The Company leases office space in Cambridge, Massachusetts, New York, New York and San Francisco, California, pursuant to short-term arrangements. The Cambridge and San Francisco leases are on a month-to-month basis, requiring one month’s notice before termination. The New York lease is renewable on a quarterly basis and the last renewal extended the lease term until March 31, 2023. These lease agreements include payments for lease and non-lease components and the Company has elected to not separate such components and these payments were recognized as rent expense. As of March 31, 2022, total future minimum lease payments for its short-term leases in Cambridge, Massachusetts, New York, New York and San Francisco, California was $64,920 due in 2022. The Company leases storage space for its electronic data equipment in Somerville, Massachusetts. This lease is renewable on an annual basis effective every March 1st. Prior to December 31, 2021, the Company renewed the lease through March 31, 2023. As of March 31, 2022, total future minimum lease payments for this lease were $16,804 due in 2022. In October 2020, the Company entered into an office lease (“Via Frontera Lease”) in San Diego, California with a lease term of 67 months. At the lease commencement date, a right-to-use asset and lease liability was recognized by the Company for $637,863. In January 2022, the Company exercised its option to terminate the Via Frontera Lease 20 months early. The lease will terminate on October 1, 2023. This was accounted for as a lease modification which reduces the term of the existing lease and the Company adjusted the value of its right-of-use asset and operating lease liability by $347,739 using an incremental borrowing rate of approximately 6%. ​ The modification is reflected as a non-cash operating activity in the statement of cash flows for the three months ended March 31, 2022. ​ The Company subsequently entered into a sublease of the Via Frontera Lease, the term of which commenced in March 2022 and continues through the full remaining obligation. Sublease income will be accounted for as a reduction of rent expense in the statement of operations. ​ As part of the BioArkive acquisition, the Company assumed the obligations of three leases in San Diego, California. One is for 38,613 square feet of office and laboratory space, under a lease that terminates on April 30, 2032, the second is for a 6,100 square feet of office and laboratory space under a lease that terminates on December 31, 2022 (the “Site 2 Lease”), and the third is for a lease for 4,760 square feet of office and laboratory space under a lease that terminates on March 31, 2024. As a result, the Company recorded right-to-use assets and lease liabilities of $4,824,700 on the acquisition date of December 22, 2021. In February 2022, the Company entered into a sublease of the Site 2 Lease, the term of which continues through the remaining term of the Site 2 Lease. Future minimum lease payments for operating leases with initial or remaining terms in excess of one year at March 31, 2022 were as follows: ​
​ | ​ | ​ | ​
​ |  | Amount
Remainder of 2022 | ​ | $ | 496,015
2023 | ​ |  | 843,463
2024 | ​ |  | 732,546
2025 | ​ |  | 739,689
2026 | ​ |  | 761,877
Thereafter | ​ |  | 4,467,246
Total future lease payments | ​ |  | 8,040,836
Less: Imputed interest | ​ |  | (3,067,891)
Total lease liabilities | ​ | $ | 4,972,945
Current portion lease liability | ​ | $ | 265,419
Lease liability, noncurrent | ​ |  | 4,707,526
Total lease liability | ​ | $ | 4,972,945
​ Quantitative information regarding the Company’s leases for the three months ended March 31, 2022 and 2021 is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | March 31, |  | March 31, |
​ | ​ | 2022 | ​ | 2021 | ​
Lease costs: | ​ |  | ​ | ​ |  | ​ | ​
Operating lease cost | ​ | $ | 264,544 | ​ | $ | 34,251 |
Short-term lease cost | ​ |  | 81,927 | ​ |  | 57,346 |
Sublease income | ​ |  | (29,129) | ​ |  | — | ​
Total lease costs | ​ | $ | 317,342 | ​ | $ | 91,597 |
Cash paid for amounts included in the measurement of lease liabilities: | ​ |  |  | ​ |  |  |
Operating cash flows from operating leases | ​ | $ | 163,975 | ​ | $ | 27,720 |
Operating cash flows from short-term leases | ​ |  | 81,927 | ​ |  | 57,346 |
​ | ​ | $ | 245,902 | ​ | $ | 85,066 | ​
Weighted-average remaining lease term - operating leases | ​ |  | 9.65 years | ​ |  | 5.08 years | ​
Weighted-average discount rate - operating leases | ​ |  | 9.3% | ​ |  | 6.0% | ​
​ As the Company’s leases typically do not provide an implicit rate, the Company uses an estimate of its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. Litigation From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of its business activities and may be exposed to litigation in connection with its products and operations. The Company’s policy is to assess the likelihood of any adverse judgments or outcomes related to legal matters, as well as ranges of probable losses. When it is probable that future expenditures will be made and can be reasonably estimated the Company will accrue a liability for such matters. Significant judgement is required to determine both probability and estimated amount. The Company is not aware of any material legal matters. Clinical Research Contracts The Company may enter into contracts in the normal course of business with clinical research organizations for clinical trials, with contract manufacturing organizations for clinical supplies, and with other vendors for preclinical studies, supplies and other services for our operating purposes. These contracts generally provide for termination with a 30-day notice.

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