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Commitments
 9 Months Ended
Sep. 30, 2024
Commitments  
Commitments

6.Commitments

On January 3, 2024, the Company entered into a sublease agreement (the “Sublease”) with Duck Creek Technologies LLC to occupy 30,110 square feet of office space in Boston, Massachusetts to replace its existing office space. The Sublease commenced on June 1, 2024 and will end on November 30, 2028 (or on such earlier date as the term may cease or expire as set forth in the Sublease). The Company concluded that the Sublease was an operating lease and recognized a lease liability and right-of-use (“ROU”) asset of approximately $5.8 million at the inception of the Sublease. The lease liability represents the present value of the remaining lease payments, discounted using the Company’s estimated incremental borrowing rate of 7.49%. The ROU asset represents the lease liability adjusted for any prepaid and accrued rent payments. The Sublease is secured by a security deposit of $0.4 million. As of September 30, 2024, the remaining lease term of the Sublease was 4.2 years.

The Sublease is scheduled to expire in 2028. Future minimum payments required under the Sublease as of September 30, 2024 are summarized as follows (in thousands):

​

​

​

​

Period Ending September 30,

    

Amount

2024

​

$

261

2025

​

​

1,576

2026

​

​

1,608

2027

​

​

1,640

2028

​

​

1,531

Total lease payments

​

$

6,616

Less: imputed interest

​

​

(978)

Total operating lease liabilities

​

$

5,638

​

Rent expense was $0.4 million and $0.2 million for the three months ended September 30, 2024 and 2023, respectively. Rent expense was $0.9 million and $0.5 million for the nine months ended September 30, 2024 and 2023, respectively. Lease payments were $0.4 million and $0.2 million for the three months ended September 30, 2024 and 2023, respectively. Lease payments were $0.9 million and $0.5 million for the nine months ended September 30, 2024 and 2023, respectively.